Buy UPL, target price Rs 735: ICICI Direct

ICICI Securities has buy call on with a target price of Rs 735. The current market price of UPL Ltd. is Rs 642.6 .

UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 49032.62 Crore) operating in Pesticides/Agro Chemicals sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 9193.00 Crore, up 1.99 % from last quarter Total Income of Rs 9014.00 Crore and up 3.15 % from last year same quarter Total Income of Rs 8912.00 Crore. Company reported net profit after tax of Rs 951.00 Crore in latest quarter.

Investment Rationale
UPL has been struggling to sustain above its long term mean+1*sigma levels since September 2019. As the stock was able to move above these levels in the recent up move, further momentum towards its 2*sigma, placed above Rs 700, cannot be ruled out.

Promoter/FII Holdings
Promoters held 27.9 per cent stake in the company as of Dec 30, 2020, while FIIs held 35.8 per cent, DIIs 15.9 per cent and public and others 20.4 per cent