. UPL: Higher working capital increases net debt (UPLL IN, Mkt Cap USD7.3b, CMP INR770, TP INR800, 4% Upside, Neutral) Earnings better than expected UPLL reported strong revenue growth of 27% YoY driven by improved price realization (+18% YoY). Higher double-digit sales growth was witnessed in key markets such as LATAM, North America and ROW except India (8% YoY). Gross debt increased to INR301b in 1QFY23 from INR259b in 4QFY22 with net debt rising by INR76b QoQ to INR265b due to an in...
The independent financial analyst theScreener just slightly lowered the general evaluation of UPL (IN), active in the Speciality Chemicals industry. The title has lost a star(s) at the fundamental level and now shows 3 out of 4 stars. Its exposure to market risk remains nonetheless the same and can be still described as defensive. theScreener slightly downgrades the general evaluation to Slightly Positive for the title on account of the lost star(s). As of the analysis date February 8, 2022, the...
A director at UPL Limited bought 437,040 shares at 687.750INR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearl...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
UPL: Higher fixed costs weigh on margins (UPLL IN, Mkt Cap USD8.3b, CMP INR808, TP INR760, 6% Downside, Neutral) Operating performance below our expectation UPLL reported a muted operating performance despite gross margin expansion, weighed by higher fixed costs (+10% YoY) and logistic costs. The gross margin expansion was attributable to a better product mix as well as realization, partially offset by higher raw material cost. In 1QFY22, the company's net debt further increased INR26b a...
UPL: LATAM, India drive revenue growth (UPLL IN, Mkt Cap USD5.8b, CMP INR543, TP INR613, 13% Upside, Neutral) EBITDA/PAT above estimate Revenue growth in 3QFY20 was led by LATAM, while the EBITDA performance was driven by synergy benefits from the Arysta acquisition. EBITDA/PAT for the quarter exceeded our estimate by 15%/47%. We thus increase our EBITDA/PAT estimate by 7%/25% for FY20, but largely maintain it for FY21/22. Gross debt has increased sequentially and also over 9MFY20, whi...
UPL: Yet another quarter of strong performance by LATAM (UPLL IN, Mkt Cap USD6.2b, CMP INR580, TP INR553, 5% Downside, Neutral) Lower-than-expected operating performance: UPLL (including Arysta) reported overall revenue of INR78.2b (v/s est. INR76.3b) in 2QFY20, up 84% YoY. However, on like-to-like basis (including Arysta in 2QFY19), revenue grew 11% YoY (volume growth: 15%, price: -1%; exchange: -3%). Reported EBITDA stood at INR15.4b (v/s est. INR18.1b; +11% YoY on like-to-like basis), ...
UPL: LATAM continues driving overall growth; Big miss; leverage remains a concern (UPLL IN, Mkt Cap USD6.6b, CMP INR596, TP INR630, 6% Upside, Neutral) performance below expectations: Revenue (including Arysta) rose 91% YoY to INR79.1b (our estimate: INR81.9b) in 1QFY20. However, on a like-to-like basis (i.e., including Arysta in 1QFY19), revenue was up 7% YoY (volume growth: 5%, price growth: 1% and exchange gain: 1%). Reported EBITDA was up 47% YoY to INR12.5b (our estimate: INR18b; +1...
UPL: North America to remain under pressure (UPLL IN, Mkt Cap USD7.2b, CMP INR646, TP INR691, 7% Upside, Neutral) Global major crop protection companies like BASF and ADAMA have investors alarmed after they cut their CY19 growth estimates due to difficult weather conditions in North America (NA) and the ongoing US-China trade war. The NA market contributes 18% to UPLL’s revenues, and its farm profitability too should come under pressure owing to the bad weather conditions. Additionally, ...
UPL: Arysta acquisition completed – earnings momentum intact; Valuations fair and leverage rises; Downgrade to Neutral (UPLL IN, Mkt Cap USD7.4b, CMP INR1017, TP INR1067, 5% Upside, Downgrade to Neutral) In-line operational performance: UPLL's (ex-Arysta) revenue increased 15.2% YoY (7% by volume, 5% by price and 3% by FX) to INR65.6b (our estimate: INR65.6b) in 4QFY19. EBITDA grew 17.7% YoY to INR14.3b (our estimate: INR14.4b), with the margin expanding 50bp YoY to 21.9% (our estimate: 2...
The MSCI EM index continues to develop positively from a price perspective and we expect higher prices ahead. RS for the MSCI EM index is consolidating when compared to the MSCI EAFE index, which we believe is largely due to consolidation in the U.S. dollar. Therefore, the direction of the dollar will be critical for EM equities. A breakout in the USD may begin to create problems for EM, whereas a failure to break above 97.70-98 resistance and a gradual weakening of the USD should be an environm...
UPL: On a firm footing in North America; Changing crop mix and favorable positioning to augur well (UPLL IN, Mkt Cap USD6.6b, CMP INR899, TP INR1035, 15% Upside, Buy) The North America - a key market for UPLL - is the third largest agrochemical market after LATAM and Europe. North America contributed 18% to UPLL's annual revenues, while it contributed 23% to revenues in 4QFY18. Further, 42% of UPLL's total revenue from North America in FY18 was realized in 4Q. In this report, we analyze th...
Broadly speaking, RS for MSCI EM is currently exhibiting some mild deterioration vs. MSCI EAFE following four months of clear outperformance. Nonetheless, the MSCI EM index is bottoming and remains attractive from a price perspective. We believe this recent RS weakness could very well be part of a longer-term RS bottoming process - especially if the U.S. dollar (DXY) is unable to break above 98. Below we highlight attractive and actionable themes within EM: • EM Countries: China has assumed a...
UPL: A quarter of holistic growth; Cheers across geographies barring India (UPLL IN, Mkt Cap USD5.5b, CMP INR770, TP INR943, 22% Upside, Buy) Largely in-line result; operational performance improves: Revenue increased 17.3% YoY to INR49.2b (our estimate: INR47.7b) in 3QFY19, driven by volume growth of 6% YoY and price growth of 7% YoY. EBITDA increased 22.6% YoY to INR10,160m (our estimate: INR9,633m), with the margin expanding 90bp YoY to 20.6% (our estimate: 20.2%). Adj. PAT was flattis...
UPL: Copper-based products on the radar in the EU; UPLL’s exposure fairly limited (UPLL IN, Mkt Cap USD5.4b, CMP INR763, TP INR905, 19% Upside, Buy) The EU has passed a regulation (effective from Jan’19) to minimize the use of copper in crop protection products. The new regulation states that the permissible use of phytosanitary products (pesticides, nematicides and rodenticides) containing copper compounds should be curbed. In this report, we analyze details of the regulation and its impac...
UPL: Set to play in the big league; More support from strong prospects for key agrochem markets (UPLL IN, Mkt Cap USD5.5b, CMP INR769, TP INR924, 20% Upside, Buy) We met UPLL’s management to cognize the narrative around the company’s strategy to emerge as a better player with an improved product basket. We also attempted to understand how the key LATAM and Europe markets (together account for ~47% of the global agrochemical markets) are shaping up in terms of opportunities. Key highlights: ...
UPL: Growth momentum intact; LATAM pulls up an otherwise moderate performance (UPLL IN, Mkt Cap USD4.3b, CMP INR622, TP INR749, 20% Upside, Buy) In-line quarter; operational performance improves: UPLL’s revenue increased 12.9% YoY to INR42.6b (our estimate: INR42.3b) in 2QFY19, driven by volume growth of 8% and price growth of 4%. EBITDA increased 17% YoY to INR8,390m (our estimate: INR8,324m) in the quarter, with the margin expanding 60bp YoY to 19.7% (in-line). Consequently, adj. PAT i...
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. o...
UPL: Identifying good seeds for a good crop; Acquires Arysta LifeScience for USD4.2b (UPLL IN, Mkt Cap USD4.1b, CMP INR550, TP INR664, 21% Upside, Buy) UPLL announced the acquisition of Arysta LifeScience – the agrochemical business of US-based Platform Chemicals – for a consideration of USD4.2b. The acquisition, which was done via UPPL’s wholly owned subsidiary UPL Corporation, is backed by USD1.2b equity investment from Abu Dhabi Investment Authority (ADIA) and TPG. ADIA and TPG wil...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.