MOSL: UPL (Buy)-Starts off the year with outperformance across geographies; Lower channel inventory
UPL: Starts off the year with outperformance across geographies; Lower channel inventory and benign weather conditions augur well
(UPLL IN,Mkt Cap USD4.8b, CMP INR643, TP INR749, 16% Upside, Buy)
- Results in-line; operational performance improves: UPLL's revenue increased 11% YoY to INR41.3b (est. of INR41.9b) in 1QFY19, driven by volume growth of 8% YoY and price increase of 1% YoY. EBITDA grew 12.9% YoY to INR8,470m (est. of INR8,638m), with the margin expanding 40bp YoY to 20.5% (est. of 20.6%). Higher interest cost of INR1,750m (est. of INR790m) was partly offset by a lower tax rate of 9.2% (est. of 16%). Consequently, adj. PAT grew 11.6% YoY to INR5,590m (est. of INR5,819m).
- All-round outperformance versus market: UPLL outperformed the industry across geographies, exhibiting 11.6% YoY growth in India, 17.2% YoY in LatAM, 10.8% in Europe, 5.5% in RoW and 8.5% in North America, driven by benign weather conditions and stabilizing channel inventories. Further, UPPL continues expanding its product portfolio, as evident by the launch of 'Sweep Power' in India and expansion of the glufosinate category into India, LatAM, Africa and other markets.
UPL is a global producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals based in India. Co. offers a range of products that includes insecticides, Fungicides, Herbicides, Fumigants, PGR and Rodenticides. Co. manufactures and markets Caustic Chlorine, White Phosphorus, Industrial Chemicals, Specialty Chemicals and is engaged in Captive Power Generation of 48.5 MW. Co. maintains a range of generic agrochemical and other chemical intermediates which are exported to more than 100 countries in the world.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.