Buy UPL, target price Rs 1020: Prabhudas Lilladher

Prabhudas Lilladher has buy call on UPL with a target price of Rs 1020. The current market price of UPL Ltd. is Rs 733.9. Time period given by analyst is one year when UPL Ltd. price can reach defined target.

UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 55132.13 Crore) operating in Pesticides/Agro Chemicals sector.

UPL Ltd. 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 30-06-2022, the company reported a Consolidated Total Income of Rs 10894.00 Crore, down -31.81 % from last quarter Total Income of Rs 15977.00 Crore and up 27.22 % from last year same quarter Total Income of Rs 8563.00 Crore. Company reported net profit after tax of Rs 975.00 Crore in latest quarter.

Investment Rationale
Citing positive demand scenario globally coupled with better realizations, UPL raised its revenue and EBITDA growth guidance to 12-15% and 15-18% in FY23E (earlier 10% and 12-15% YoY), with growth to be driven by focus on differentiated solutions and new product launches. While, the company expects to reduce debt by USD400mn in FY23E. It broadly maintains FY23/24 estimates. It expects UPL to clock Revenue/PAT CAGR of 11%/20% over FY22-24E.

Promoter/FII Holdings
Promoters held 28.96 per cent stake in the company as of 30-Jun-2022, while FIIs owned 36.45 per cent, DIIs 16.46 per cent.