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SMR
08-05-2015, 11:36 AM
UPL Limited is a generic agrochemical company. The Company is engaged in the business of manufacturing and marketing crop protection chemicals. It is also engaged in offering crop protection solutions. The Company manufactures crop protection chemicals and industrial chemicals across around 28 manufacturing locations across the world. It offers a product portfolio of crop protection chemicals, including fungicides, herbicides, insecticides, plant growth regulators, rodenticides, specialty chemicals, nutrifeeds and seeds. The Company operates through two business segments: Agro activity and Non-agro activity. The Agro activity segment includes the manufacture and marketing of conventional agrochemical products, seeds and other agricultural related products. The Non-agro activity segment includes manufacture and marketing of industrial chemical and other non-agricultural related products. It operates through around 76 global subsidiaries in the agrochemical space.

Official Website: www.uplonline.com

SMR
08-05-2015, 11:37 AM
For 1QFY2016, United Phosphorous (UPL) posted a 10.7% yoy growth in sales to Rs3,012cr, driven by domestic sales which rose by 15% yoy, while exports including forex benefits posted a growth of 9% yoy. The overall growth was driven by volumes, which rose by 16% yoy, while the exchange rate impact was of -5% yoy, while pricing remained constant. The EBDITA margin came in at 17.8% almost similar to 1QFY2015. The Adj. PAT came in at Rs285cr V/s Rs263cr in 1QFY2015, a growth of 8.6% yoy. The Management maintained its bullish outlook and guided at a 12-15% revenue growth in FY2016, accompanied by 60-100bp margin improvement. We remain Neutral on the stock. Quarterly highlights: For 1QFY2016, United Phosphorous (UPL) posted a 10.7% yoy growth in sales to Rs3,012cr, driven by the domestic sales (Rs1,083cr) which rose by 15% yoy, while exports including forex benefits (Rs1,981cr) posted a growth of 9% yoy. Exports were driven by Latin America, which posted a 21% yoy growth; India posted a 15% yoy growth. Other key markets, Europe and USA, posted a yoy growth of 1% and 5%, respectively. The EBDITA margin came in at 17.8%, almost similar to 1QFY2015. The Adj. PAT came in at RS285cr V/s Rs263cr in 1QFY2015, a growth of 8.6% yoy. Outlook and valuation: We expect UPL to post a CAGR of 15.0% and 20.0% in its sales and PAT respectively, over FY2015-17E. At the current market price, the stock is fairly valued; we therefore maintain our Neutral rating on the stock.

Source: http://www.angelbroking.com/