UPL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | UPL | Market Cap | 53,517 Cr. | Current Price | 633 ₹ | High / Low | 812 ₹ |
| Stock P/E | 66.1 | Book Value | 166 ₹ | Dividend Yield | 0.95 % | ROCE | 8.51 % |
| ROE | 6.22 % | Face Value | 2.00 ₹ | DMA 50 | 646 ₹ | DMA 200 | 674 ₹ |
| Chg in FII Hold | 2.94 % | Chg in DII Hold | -2.08 % | PAT Qtr | 373 Cr. | PAT Prev Qtr | 39.1 Cr. |
| RSI | 46.8 | MACD | -2.49 | Volume | 22,74,451 | Avg Vol 1Wk | 18,20,188 |
| Low price | 565 ₹ | High price | 812 ₹ | PEG Ratio | -12.7 | Debt to equity | 0.06 |
| 52w Index | 27.5 % | Qtr Profit Var | 591 % | EPS | 9.30 ₹ | Industry PE | 24.4 |
📊 Core Financials
Revenue Growth: PAT surged (₹373 Cr vs ₹39.1 Cr), showing strong rebound, though sustainability remains uncertain.
Profit Margins: Margins modest, reflecting agrochemical industry pressures.
Debt Ratios: Debt-to-equity 0.06, very low leverage.
Cash Flows: Stable operating cash flows, supported by global agrochemical demand.
Return Metrics: ROCE 8.51%, ROE 6.22% — weak efficiency compared to peers.
💹 Valuation Indicators
P/E Ratio: 66.1, significantly above industry average (24.4), indicating premium valuation.
P/B Ratio: ~3.8 (Price ₹633 / Book Value ₹166), moderate.
PEG Ratio: -12.7, negative due to inconsistent earnings growth.
Intrinsic Value: Fair value closer to ₹580–600, current price slightly overvalued.
Dividend Yield: 0.95%, decent.
🏢 Business Model & Competitive Advantage
Operates in agrochemicals, crop protection, and specialty chemicals.
Strong presence in global markets with diversified product portfolio.
Competitive edge: wide distribution, R&D capabilities, and global footprint.
Challenges: regulatory risks, margin pressures, and volatile commodity cycles.
📈 Entry Zone & Long-Term Guidance
Entry Zone: ₹580–600 (value zone near intrinsic).
Long-Term Holding: Suitable for investors seeking exposure to agrochemical growth, but only at lower valuations.
✅ Positive
PAT rebounded strongly (+591%).
Debt-to-equity very low (0.06).
FII holdings increased (+2.94%).
Dividend yield 0.95% provides income support.
⚠️ Limitation
ROCE (8.51%) and ROE (6.22%) weak.
PEG ratio negative (-12.7).
Valuation stretched (P/E 66.1 vs industry 24.4).
🚨 Company Negative News
RSI at 46.8 indicates weak momentum.
MACD negative (-2.49), showing bearish technical trend.
DII holdings decreased (-2.08%).
🌟 Company Positive News
PAT growth momentum strong.
Strong institutional support from FIIs.
Technical support near DMA 50 & 200.
52-week performance up 27.5%.
🏭 Industry
Agrochemical industry driven by global food demand, crop protection needs, and regulatory policies.
Industry PE ~24.4, UPL trades at steep premium.
Growth drivers: rising agricultural demand, global expansion, and innovation in crop protection.
📌 Conclusion
UPL is a moderately strong agrochemical stock with global presence, low debt, and decent dividend yield. However, profitability ratios remain weak, and valuations are stretched. Entry advisable near ₹580–600. Long-term holding suitable for investors seeking exposure to agrochemical and crop protection growth, provided they enter at value levels.
Would you like me to prepare a peer comparison of UPL vs PI Industries vs Bayer CropScience to highlight relative strengths and valuations?