The research house expects the company to clock 12 percent revenue CAGR & 14 percent PAT CAGR over FY18-20.
UPL shares gained over a percent after Motilal Oswal has initiated coverage with a Buy call and target price of Rs 945 per share, valuing the company at 17x FY20 EPS of Rs 55.60.
The research house expects the company to clock 12 percent revenue CAGR & 14 percent PAT CAGR over FY18-20.
Strong research & development and backward integration will help the company grab fungicide opportunity while new launches & branded products are expected drive growth, Motilal Oswal said.
UPL is the second largest post-patent global player in crop protection. It has evolved from a crop protection chemicals company into a complete agro solutions provider, offering seeds, crop protection chemicals, biologicals, soil nutrients and post-harvest solutions.
It is well diversified across geographies, with revenue contribution of 32 percent from Latin America, 20 percent from India, 17 percent from North America, 13 percent from Europe, and 18 percent from Rest of the World.
At 15:26 hours IST, the stock price was quoting at Rs 728.50, up Rs 7.05, or 0.98 percent on the BSE.
