Neutral on UPL, target price Rs 497: Motilal Oswal

Motilal Oswal has given a neutral rating to UPL with a target price of Rs 497. The share price moved down by 1.42 per cent from its previous close of Rs 453.15. The stock’s last traded price is Rs 446.70.

UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 34072.61 Crore) operating in Pesticides/Agro Chemicals sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 8939.00 Crore, up 14.12 % from last quarter Sales of Rs 7833.00 Crore and up 14.35 % from last year same quarter Sales of Rs 7817.00 Crore Company reported net profit after tax of Rs 543.00 Crore in latest quarter.

Investment Rationale
Expect revenue/EBITDA/PAT CAGR of 8%/13%/14% over FY20–22E. The brokerage values the stock at 11x FY22E EPS and arrive at TP of INR497.

Promoter/FII Holdings
Promoters held 27.9 per cent stake in the company as of Sept 30, 2020, while FIIs held 37.2 per cent, DIIs 16.2 per cent and public and others 18.7 per cent.