⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
UPL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | UPL | Market Cap | 53,313 Cr. | Current Price | 632 ₹ | High / Low | 812 ₹ |
| Stock P/E | 106 | Book Value | 162 ₹ | Dividend Yield | 0.95 % | ROCE | 1.26 % |
| ROE | 8.20 % | Face Value | 2.00 ₹ | DMA 50 | 685 ₹ | DMA 200 | 694 ₹ |
| Chg in FII Hold | 3.31 % | Chg in DII Hold | -1.05 % | PAT Qtr | 39.1 Cr. | PAT Prev Qtr | 416 Cr. |
| RSI | 41.2 | MACD | -26.5 | Volume | 15,34,268 | Avg Vol 1Wk | 17,72,595 |
| Low price | 580 ₹ | High price | 812 ₹ | PEG Ratio | -8.82 | Debt to equity | 0.07 |
| 52w Index | 22.3 % | Qtr Profit Var | -93.7 % | EPS | 25.6 ₹ | Industry PE | 22.2 |
📊 Financials
- Revenue Growth: Weak, PAT dropped sharply to 39.1 Cr from 416 Cr
- Profit Margins: EPS at 25.6 ₹, showing profitability but under heavy pressure
- Debt Ratios: Debt-to-equity at 0.07, very low leverage
- Cash Flows: Likely strained due to steep profit decline
- Return Metrics: ROCE 1.26% and ROE 8.20% indicate poor efficiency
💹 Valuation
- P/E Ratio: 106, extremely high compared to industry average (22.2), suggesting severe overvaluation
- P/B Ratio: ~3.9 (Current Price / Book Value), moderate
- PEG Ratio: -8.82, reflecting weak growth prospects
- Intrinsic Value: Overvalued given declining profitability
🏢 Business Model & Health
- Business Model: Agrochemicals and crop protection solutions, global presence
- Competitive Advantage: Diversified product portfolio, but profitability under stress
- Overall Health: Financially stable with low debt, but efficiency metrics are weak
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 600–630 ₹ levels (close to support)
- Long-Term Holding: Suitable only for patient investors; dividend yield (0.95%) adds minor stability
✅ Positive
- Low debt-to-equity ratio (0.07), ensuring financial stability
- Dividend yield of 0.95% provides investor returns
- FII holdings increased (+3.31%), showing foreign investor confidence
⚠️ Limitation
- Quarterly PAT dropped drastically (39.1 Cr vs 416 Cr)
- ROCE (1.26%) and ROE (8.20%) remain weak
- P/E ratio extremely high compared to industry peers
📉 Company Negative News
- DII holdings decreased (-1.05%), showing reduced domestic institutional support
- Technical indicators (RSI 41.2, MACD -26.5) suggest weak momentum
📈 Company Positive News
- FII holdings increased (+3.31%), showing strong foreign support
- Dividend yield provides some stability despite weak earnings
🏭 Industry
- Agrochemicals industry P/E: 22.2, much lower than UPL’s valuation
- Sector demand driven by global agriculture and crop protection needs
🔎 Conclusion
- UPL is financially stable with low debt but faces severe profitability challenges
- Valuation is extremely expensive compared to industry peers, with weak efficiency metrics
- Entry near 600–630 ₹ may offer value for cautious investors, but long-term holding requires patience and risk tolerance