20 Jul 2018 | 4:33 PM
Research Report

Equity Research Report: Religare Investment Pick

UPL Ltd is a global generic crop protection, chemicals and seeds company. The company is engaged in the business of agrochemicals, industrial chemicals and chemical intermediates. The company manufactured best -in-class crop protection chemicals and industrial chemicals across 28 manufacturing locations spread across the globe. It is present across the entire life cycle of the farmer’s engagement – from seed selection, pre-harvest care and post-harvest support.
30 Dec 2014 | 12:40 PM

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.