Investment Rationale :
India and Latin America accounts for 60 per cent of the company's overall revenue. UPL strengthened its position in Brazil following the acquisition of DVA Agro Brazil, a key player in the Brazilian agrochemical market. The company expects both these regions to fare well.
Considering the falling prices of crude oil and its derivatives, the margins are expected to rise further. The company has indicated that the margins during FY15 are expected around 18-19 per cent, with revenue growth estimated at 12-15 per cent.
With rising population, the demand for food grains is increasing faster as compared to its production. Moreover, every year, a significant amount of crop yield is lost due to non-usage of crop protection products. There is a big opportunity exists in Indian agrochemical industry as the usage of pesticides in India is one of the lowest in the world.