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UPL - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.8

Last Updated Time : 03 May 26, 11:25 am

Technical 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

📈 Chart & Trend: UPL is trading below both its 50 DMA (652 ₹) and 200 DMA (679 ₹), reflecting weak momentum and bearish structure. RSI at 50.4 indicates neutral momentum, while MACD at 1.99 shows only a mild positive bias. Bollinger Bands remain moderately tight, suggesting consolidation with limited upside potential.

🔑 Momentum Signals: Current price (642 ₹) is holding near support at 630–635 ₹. Resistance levels are seen at 660 ₹ and 680 ₹. Volume (21.8L) is above the 1-week average (18.0L), showing higher participation but largely on selling pressure.

🎯 Entry Zone: 630–635 ₹ near support.

💰 Exit Zone: 660 ₹ (partial profit) and 680 ₹ (full exit).

📊 Trend Status: Consolidating with bearish bias.

Positive

  • EPS at 25.6 ₹ provides valuation support.
  • Dividend yield at 0.93% adds investor appeal.
  • FII holdings increased (+2.94%), showing foreign investor confidence.
  • Debt-to-equity ratio at 0.07 indicates low leverage risk.

Limitation

  • Extremely high P/E (108) vs industry PE (25.0), indicating severe overvaluation.
  • Weak ROCE (1.26%) and modest ROE (8.20%) highlight poor efficiency.
  • PEG ratio at -8.96 reflects negative growth outlook.
  • Price below both 50 DMA and 200 DMA confirms bearish structure.

Company Negative News

  • PAT dropped sharply (39.1 Cr. vs 416 Cr.), -93.7% sequential decline.
  • DII holdings reduced (-2.08%), showing weaker domestic support.
  • 52-week performance weak at 31.0% index level.

Company Positive News

  • FII inflows (+2.94%) reflect foreign confidence despite weak earnings.
  • Dividend yield maintained at 0.93%.

Industry

  • Industry PE at 25.0 suggests sector trading at moderate valuations compared to UPL’s premium.
  • Agrichemical sector facing margin pressures due to global demand slowdown and pricing volatility.

Conclusion

UPL is consolidating with bearish bias, trading below key moving averages despite mild MACD support. Entry near 630–635 ₹ is only suitable for speculative trades with exits at 660–680 ₹. Weak fundamentals, sharp earnings decline, and overvaluation limit conviction. Best approached with caution and strict stop-loss discipline.

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