UPL shares: Add UPL, target price Rs 860 : ICICI Securities

added a call on UPL with a target price of Rs 860. The current market price of UPL is Rs 738.6.

The period given by the analyst is one year when . the price can reach the set target.

UPL Ltd., incorporated in 1985, is a large capitalization company (having a market capitalization of Rs 55372.33 Crore) operating in the pesticides/agrochemicals sector.

The main product/revenue segments of UPL Ltd. include agrochemicals, export incentives, sale of services, other operating income, royalty income for the year ending March 31, 2022.


For the quarter ended 30-06-2022, the company reported consolidated total revenue of Rs 10894.00 Crore, down -31.81% from last quarter, total revenue of Rs 15977.00 Crore and up 27.22% compared to the same quarter last year. Total income of Rs 8563.00 Crore. The company reported net profit after tax of Rs 975.00 Crore last quarter.

Investment rationale
Brokerage models UPL to report revenue and PAT CAGR of 12.7% and 22.7%, respectively, in fiscal years 22-24E, and RoE is expected to grow from 19.8% in the fiscal year 22 to 19.6% in FY24. Remains confident in value creation with RoIC > cost of equity. It maintains the ADD rating on the stock with a DCF-based target price of Rs860 (10x implied P/E of the FY24E EPS).

Promoter/Fii Holdings
The promoters held 28.96% of the company’s capital as of June 30, 2022, while the FIIs held 36.45% and the DIIs 16.46%.

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