Growth momentum to drive gains for UPL

Brokerages bullish on stock amid easing leverage situation

- RAM PRASAD SAHU

The country’s largest agrochemical company, UPL, saw better-than-expected operating performance during the September quarter. Strong Q2 numbers, a stable debt situation, and expectations that the company may outperform the sector led to a 1.7 per cent gain in the share price on Friday.

The stock is up 36.5 per cent over the past year compared to the Nifty 200 gains of 4.3 per cent during this period. Riding on a 7 per cent volume growth, the company posted consolidated sales growth of 8.4 per cent year-on-year (Y-o-Y) to ₹12,019 crore.

While there were some forex-related gains, the overall growth came in despite lower realisations.

Growth was led by the North American and Latin American (LatAm) markets, which saw an uptick of 63 per cent and 13 per cent, respectively. Growth in the former was led by the healthy volume gains in key molecules — metribuzin, metolachlor, and glufosinate.