In its clarification after trading hours yesterday, 22 January 2020, UPL said that it was unable to offer any comment at this juncture. The company is committed to fully co-operate with the authorities in the ongoing search. The company conducts its business in compliance with the provisions of law and shall disseminate further information to the extent and as when it is required to be disseminated.
The media reported that I-T department conducted searches at UPL's offices and premises on account of suspicion of tax evasion and account manipulation.
The stock slipped 6.10% in four consecutive trading sessions, from its recent closing high of Rs 588.95 attained on Friday, 17 January 2020.
In the past one month, the scrip declined 4.25%. On the technical front, the stock's RSI (relative strength index) stood at 33.809. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
UPL's consolidated net profit fell 59.4% to Rs 126 crore on 83.6% surge in net sales to Rs 7,817 crore in Q2 September 2019 over Q2 September 2018.
UPL provides crop protection solutions. The firm is engaged in the business of agrochemicals, industrial chemicals, chemical intermediates and specialty chemicals.