Buy UPL, target price Rs 965 : JM Financial

JM Financial has buy call on UPL with a target price of Rs 965. The current market price of UPL is Rs 697.1. Time period given by analyst is a year when UPL price can reach defined target.

UPL, incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 52527.52 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 16780.00 Crore, up 21.65 % from last quarter Total Income of Rs 13794.00 Crore and up 5.03 % from last year same quarter Total Income of Rs 15977.00 Crore. Company has reported net profit after tax of Rs 960.00 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 31-03-2023, the company has a total of 75 Crore shares outstanding.

Investment Rationale
The brokerage maintains BUY with a revised Jun’24 TP of INR 965 (vs. Mar’24 TP of INR 1,000 earlier) on account of deleveraging and possibility of value unlocking in the specialty chemicals business.

Promoter/FII Holdings
Promoters held 32.35 per cent stake in the company as of 31-Mar-2023, while FIIs owned 38.69 per cent, DIIs 14.33 per cent.