The shares of UPL Ltd., a large-cap agriculture solutions provider hit their new 52-week low of ₹ 617.75 today at 11:45 IST. The stock is down -19% year to date and -22% in a month after the buyback offer closed .
The Mumbai-based company, previously known as United Phosphorus Limited, manufactures and markets herbicides, fungicides, insecticides, seed treatment solutions, seeds, bio solutions, and soil& water technologies. It also provides crop protection services.
Pesticides maker UPL reported revenue growth of 19% for the fiscal year ended 2022 generating a return on capital employed of 15.6%. Its share in the global crop production market has doubled from 4% in 2017 to 8% in 2022. The company is able to handle supply chain headwinds because of its equitable sourcing from India, non-China and China.
For the March quarter ended 2022, backed by improved pricing in the herbicides portfolio, the company posted a 24% growth in revenues to ₹ 15,861 crores from ₹ 11,297 crores reported in the same period last year. For the period 2021-2022, net profit grew 26% to ₹ 3,626 crores from ₹ 2,872 reported a year earlier.
For the fiscal year, the company reported double-digit growth across all markets led by a 37% increase in the North American region.
Analysts at ICICI Securities have given a price target of ₹ 852 per share for the stock with a time horizon of one year. This results in an upside of 38%.
Emkay Global Financial Services expects the price to touch ₹ 930 per share in one year, signalling an upside of ₹ 51%.
Written By – Vikalp Mishra
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