💡 UPL 💡

UPL is principally engaged in the business of agrochemicals, industrial chemicals, chemical intermediates, specialty chemicals, and the production and sale of field crops and vegetable seeds.

FINANCIALS 📊
• Stock is trading at a P/E of 13 while the industry P/E is at 25.9, the Debt-to-equity ratio is at 1.08, and ROCE at 15.7%
• Revenue was up 23.95% QoQ to INR 15,861 Cr in Q4FY22
• EBITDA margin has jumped from 20.72% to 21.31%, leading to a 27.50% rise in operating profit to INR 3,380 Cr
• PAT was at INR 1,379 Cr, up 29.72% YoY

HIGHLIGHTS 📣
• The CAPEX for FY23 is pegged at INR 2000 – 3000 Cr. In FY22, net working capital days stood at 69 days, down by 2 days which UPL aims to further improve by 10% in FY23
• Sales of the Agro Activities segment have gone up 24.02% to INR 15,293 Cr (accounting for 95.78% of total sales)
• The growth was majorly triggered by robust performance in the Herbicides portfolio across the regions along with improved pricing, robust demand scenario & higher growth in differentiated products in all the operating regions
• European region remained muted with a flat growth of 2% due to revenue loss on account of a product ban
• Improved supply chain management, thrust over margin accretive differentiated products boosted the margin performance
• Major risk for the company is unfavorable weather conditions, inability in yielding synergetic benefits, stringent regulatory restrictions

TECHNICAL ANALYSIS 📈
• Stock has been moving in sideways for the past 1 year
• CCI indicator shows the stock is at an oversold region and started to moving towards overbought region, it gives the first indication to go long on the stock
• In the MACD indicator, the 12-day MACD curve (Yellow curve) cuts the 26-day MACD curve (Blue curve) and moves above the 26-day MACD curve, it gives the conformation to go long on the stock. Check whether the volumes are higher than the 20-day average before entering the trading

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Note: This is not a BUY/SELL recommendation. This is just an analysis for educational purpose

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