Add UPL, target price Rs 860: ICICI Securities

ICICI Securities has add call on with a target price of Rs 860. The current market price of UPL is Rs 807.1. Time period given by analyst is one year when UPL Ltd. price can reach defined target.

UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 62059.59 Crore) operating in Pesticides/Agro Chemicals sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 12845.00 Crore, up 39.73 % from last quarter Total Income of Rs 9193.00 Crore and up 15.08 % from last year same quarter Total Income of Rs 11162.00 Crore. Company reported net profit after tax of Rs 1301.00 Crore in latest quarter.

Investment Rationale
The brokerage models UPL to report both revenue and PAT CAGR of 8.6%, over FY21-FY23E. It remains confident of value creation with RoIC > cost of equity. It maintains ADD rating on the stock with a revised target price of Rs860 (16x FY23E; earlier TP: Rs735).

Promoter/FII Holdings
Promoters held 28 per cent stake in the company as of March 31, 2021, while FIIs held 38.4 per cent, DIIs 15.3 per cent and public and others 18.3 per cent.