Jefferies sees weak Q2, FY24 on lower crop prices for India's UPL

UPL

17/10/2023 08:20

** Global brokerage Jefferies sees weak Q2 for India's UPL
 UPLL.NS  due to lower crop prices, oversupply and competition
from China
    ** Shares of agricultural chemicals co currently down 0.6%,
taking YTD losses to around 13% 
    ** Brokerage sees muted FY24 with Y/Y sales and core profit
flattish, both lower than Q1 guidance 
    ** "Muted crop prices could continue to drag farmer's
income, impacting agro-chemicals offtake," Jefferies adds
    ** Expects gradual recovery in co's sales growth, margins
after FY24
    ** Maintains "buy" rating with PT 800 rupees 
    ** Mean recommendation of 25 analysts is "buy"; median PT
800 rupees - LSEG data
    

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))