Dolat Capital's research report on UPL
UPL reported an encouraging set of numbers, Sales were in line with estimates at Rs 111.4 bn (D.est: Rs 111.2bn), EBITDA came in lower than our estimates at Rs 19.0bn (D.est: Rs 23.2bn). APAT stood at Rs 7.6bn. On a comparable basis, sales grew by 26.0% YoY while EBITDA grew by 25.0% YoY. Growth was led by a 29% volume growth, 2% price de-growth and a negative 2% currency impact in Q4FY20. The management has guided for a revenue growth of 7-10% for the medium term.
Outlook
We value UPL at 8.5x EV/EBITDA and have a Buy rating with a target price of Rs 620/share.
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