₹1 to ₹767: Multibagger stock turns ₹1 lakh to ₹6.39 Cr in 20 years: Should you buy?
Premium- UPL Ltd is a large cap company in the chemical industry with a market valuation of ₹58,671.05 Crore.
UPL Ltd is a large cap company in the chemical industry with a market valuation of ₹58,671.05 Crore. With operations in 138 nations, UPL is a global pioneer in sustainable agriculture solutions. 90% of the world's food supply is within the company's reach, and it is tasked with providing agricultural solutions for a range of specialty and arable crops, including biological, crop protection, seed treatment, and post-harvest solutions. UPL Ltd. is an international supplier of sustainable agricultural solutions, including IOT technologies and other breakthroughs in the agricultural sector. The shares of UPL Ltd. are a conspicuous illustration of how long-term stock market investing may generate crores in profits for investors.
UPL Ltd Share Price History
On the NSE, UPL Ltd. shares ended trading on Friday at Rs. 767.80 per share, declining by 0.79% from the previous close of Rs. 773.95. The stock price climbed from ₹1.20 on July 5th, 2002 to the level it is at now, representing a massive multibagger return with an all-time high of 63,883.33%. Thus, if an individual had invested ₹1 lakh in UPL Ltd shares 20 years ago, it would today be worth ₹6.39 crore. The stock has gained 38.31% over the past five years and 6.79% over the past year.
The stock has gained by 0.47% YTD so far in 2022. In the last 6 months the stock has gained 9.04% and 8.91% in the last 1 month. On the NSE, the stock had touched a 52-week-high of ₹848.00 on 4th May 2022 and a 52-week-low of ₹607.50 on 23-June-2022 which means that at the current market price the stock is trading 9.45% below the 52-week-high and 26.38% above the 52-week-low. At the current market price of ₹767.80 the stock is trading below 5 days, 10 days EMA but higher than 20 days, 50 days, 100 days and 200 days Exponential Moving Average (EMA).
UPL Ltd Q1FY23 Results
In Q1FY23, the company reported a revenue of ₹10,821 Cr which was ₹8,515 Cr in Q1FY22 a YoY growth of 27%. In Q1FY23 the company reported a total income of ₹10,894 Cr which was ₹8,563 Cr in Q1FY22 a YoY growth of 27.22%. In Q1FY23 the company's total expenses reached ₹9,782 Cr which was ₹7,899 Cr in Q1FY22 a YoY growth of 23.83%. The company reported a 28.54 per cent rise in the consolidated net profit to ₹877 crore in the quarter ended June 30, 2022, compared with ₹677 crore in the same quarter last year.
In Q1FY23 the company reported an EBITDA of ₹2,342 Cr compared to ₹1,862 Cr in Q1FY22 a YoY growth of 26%. The company recorded a profit before tax (PBT) of ₹1,111 Cr in Q1FY23 compared to ₹664 Cr in Q1FY22, representing a YoY rise of 67%. The company's profit after tax (PAT) increased by 29% YoY to ₹1,052 Cr in Q1FY23 from ₹816 Cr in Q1FY22.
Should you buy the shares of UPL?
The research analysts of the broking firm Geojit have said in a note that “With increased sales volumes, higher realisations, raised guidance for revenue and EBITDA, and product innovation via partnerships, the company is expected to register robust growth in the quarters to come. We expect PAT to log a 21.1% CAGR over FY22- 24E. The company maintains its strong market presence with robust revenue growth across geographies, launching new products and staying open for inorganic growth. The management has also revised up the revenue and EBITDA guidance from the previous level. With the positive sentiment, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 880 based on 12x FY24E adjusted EPS."
The research analysts of the broking firm Chola Wealth Direct said that “UPL is expected to further fortify its industry leading position and garner most of the evolving opportunities evolving in agro-chemical space over the long-term on account of market share gains, increasing contribution of high margin bio-solutions business, expanding geographical presence via diverse acquisitions. The demand momentum & sustainable pricing in near term and colling RM inflation are likely to cushion strong earnings growth momentum. Moreover, the management has raised its guidance for FY23 revenue/EBITDA growth to 12-15%/15-18% on account of sustainable pricing over next couple of quarters. The stock is trading at 13.1x/10.4x on FY23/24E. We retain our stock rating as a BUY with a target price of ₹1050."
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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