India's UPL falls as pricing concerns overshadow strong Q4 results

UPL

13/05/2025 10:20

** Shares of Indian agrochemicals manufacturer UPL UPLL.NS fall ~5% to 643.15 rupees

** Shares decline despite a massive jump in Q4 profit to 9 billion rupees ($105.53 million) from a low base of 400 million rupees a year earlier which saw discounts and inventory loss due to Chinese overcapacity

** DAM Capital says pricing improvement in global agrochemical industry remains elusive, translating into depressed margins

** Adds, at current valuations, stock offers limited upside

** Elara Capital says UPL's FY26 revenue growth forecast of 4%-8%, similar to FY25 forecast, is "low"

     ** Adds, with large agrochemical supplies coming from China at low prices, growth will still be volume-led

     ** Stock rated "buy" on average by 20 analysts, with median PT at 708.5 rupees, per data compiled by LSEG

(Reporting by Ananta Agarwal in Bengaluru)

((Ananta.Agarwal@thomsonreuters.com))