UPL shares soar 7% after Q1 loss narrows to Rs 176 crore. Must you keep invested?
Consolidated whole revenue rose to Rs 9,359 crore from Rs 9,165 crore a yr in the past. Nevertheless, whole bills additionally inched as much as Rs 9,558 crore from Rs 9,539 crore.
In its quarterly presentation, the corporate highlighted key macro tendencies, noting that low commodity costs continued to affect grower incomes in Brazil, whereas unsure grower sentiment within the US was influenced by potential tariff dangers.
UPL additionally reported a decline in internet debt, attributed to decrease working capital necessities and a major enchancment in gearing ratios. Internet debt stood at Rs 21,371 crore on the finish of Q1FY26, down from Rs 27,500 crore a yr earlier, the corporate stated.
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Must you purchase, promote, or maintain UPL’s inventory? Right here’s what brokerages say:
Motilal Oswal
Motilal Oswal Monetary Companies (MOFS) has maintained a ‘Impartial’ score on UPL with a goal value of Rs 700. The brokerage famous that margin positive factors are being pushed by a greater product combine and working leverage. Development was seen throughout most platforms, besides UPL Corp, which confronted quantity strain.
Regardless of macroeconomic challenges, UPL delivered a resilient Q1FY26 efficiency. MOFS expects stronger development within the second half of FY26, supported by a restoration in volumes. Nevertheless, pricing is predicted to stay smooth, at the same time as contributions from new merchandise improve.
For FY25–27, MOFS initiatives a compound annual development price (CAGR) of seven% in income, 13% in EBITDA, and 53% in adjusted revenue after tax (PAT).
Vintage
Vintage has raised UPL’s goal value to Rs 730 from Rs 710 whereas sustaining a ‘Purchase’ score. The brokerage famous that whereas the corporate’s efficiency has remained subdued, its FY26 steering is unchanged.
Vintage highlighted UPL’s plans to extend costs of key merchandise to assist margin restoration. It additionally famous that deleveraging the steadiness sheet stays a medium-term precedence for the corporate.
Nevertheless, as a result of larger finance prices and antagonistic foreign exchange affect, Vintage has reduce its FY26 and FY27 earnings estimates by 13% and 10%, respectively.
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(Disclaimer: Suggestions, solutions, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Instances)
