Sell UPL, target price Rs 640: Nuvama Wealth

Nuvama Wealth has sell call on UPL with a target price of Rs 640. The current market price of UPL is Rs 702.2.Nuvama Wealth brokerage recommended to keep stop loss at Rs 730.

UPL, incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 52362.39 Crore) operating in Pesticides/Agro Chemicals sector.

UPL key Products/Revenue Segments include Agrochemicals, Export Incentives, Sale of services, Other Operating Revenue, Royalty Income for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 13794.00 Crore, up 9.61 % from last quarter Total Income of Rs 12585.00 Crore and up 21.35 % from last year same quarter Total Income of Rs 11367.00 Crore. Company has reported net profit after tax of Rs 1326.00 Crore in latest quarter.

The company’s top management includes Mr.Rajnikant Shroff, Mr.Arun Ashar, Mr.Jaidev Shroff, Mr.Vikram Shroff, Mr.Pradeep Goyal, Dr.Reena Ramachandran, Dr.Vasant Gandhi, Mr.Hardeep Singh. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 75 Crore shares outstanding.

Investment Rationale
Breakdown of its rising trendline acting as a support zone. Likely to face pressure for target of 640.

Promoter/FII Holdings
Promoters held 30.74 per cent stake in the company as of 31-Dec-2022, while FIIs owned 37.18 per cent, DIIs 16.19 per cent.