UPL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | UPL | Market Cap | 54,166 Cr. | Current Price | 642 ₹ | High / Low | 812 ₹ |
| Stock P/E | 108 | Book Value | 162 ₹ | Dividend Yield | 0.93 % | ROCE | 1.26 % |
| ROE | 8.20 % | Face Value | 2.00 ₹ | DMA 50 | 652 ₹ | DMA 200 | 679 ₹ |
| Chg in FII Hold | 2.94 % | Chg in DII Hold | -2.08 % | PAT Qtr | 39.1 Cr. | PAT Prev Qtr | 416 Cr. |
| RSI | 50.4 | MACD | 1.99 | Volume | 21,79,242 | Avg Vol 1Wk | 18,01,755 |
| Low price | 565 ₹ | High price | 812 ₹ | PEG Ratio | -8.96 | Debt to equity | 0.07 |
| 52w Index | 31.0 % | Qtr Profit Var | -93.7 % | EPS | 25.6 ₹ | Industry PE | 25.0 |
📊 UPL’s fundamentals remain weak. ROCE (1.26%) and ROE (8.20%) are far below industry standards, reflecting poor efficiency. EPS of 25.6 ₹ provides earnings visibility, but quarterly PAT collapsed (39.1 Cr. vs 416 Cr.), showing severe earnings deterioration. Valuation is extremely stretched with P/E at 108 compared to industry average of 25.0, while PEG ratio (-8.96) highlights poor growth prospects. Dividend yield of 0.93% adds some stability, and debt-to-equity ratio of 0.07 indicates low leverage. Technical indicators (RSI 50.4, MACD 1.99) show neutral momentum, with price trading below both 50 DMA (652 ₹) and 200 DMA (679 ₹).
💡 Entry Price Zone: Safer accumulation only between 580 ₹ – 610 ₹ near support levels. Buying above 640 ₹ carries significant downside risk.
📈 Long-Term Holding Guidance: UPL is not suitable for long-term holding due to weak profitability, poor efficiency, and overvaluation. Only speculative short-term trades with strict stop-loss discipline are advisable. Conservative investors should avoid until ROE/ROCE improve and earnings stabilize.
Positive
- EPS of 25.6 ₹ provides earnings visibility.
- Dividend yield of 0.93% adds investor appeal.
- Low debt-to-equity ratio (0.07) ensures financial stability.
- FII holdings increased (+2.94%), showing foreign investor interest.
Limitation
- Extremely high P/E (108) vs industry average (25.0).
- Negative PEG ratio (-8.96) indicates poor growth prospects.
- Weak ROCE (1.26%) and ROE (8.20%).
- Quarterly PAT collapsed (-93.7%).
Company Negative News
- PAT dropped sharply (416 Cr. → 39.1 Cr.).
- DII holdings decreased (-2.08%), showing reduced domestic confidence.
Company Positive News
- Foreign institutional investors increased holdings (+2.94%).
- Dividend yield provides some stability despite weak earnings.
Industry
- Industry PE at 25.0, much lower than UPL’s 108, highlighting extreme premium valuation.
- Agrichemicals sector remains cyclical, dependent on global demand and regulatory environment.
Conclusion
⚠️ UPL is a weak fundamental candidate with poor profitability, low efficiency, and severe overvaluation. Entry is only justified near 580–610 ₹ for speculative trades. Long-term investors should avoid until earnings turnaround and efficiency metrics improve significantly.
Would you like me to extend this into an agrochemicals sector peer overlay HTML (e.g., UPL vs Bayer CropScience, PI Industries, and Rallis India) to highlight relative valuation and efficiency positioning?