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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of UPL Ltd

About the Company - UPL Ltd

UPL Ltd. is a Public Limited Listed company incorporated on 02/01/1985 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24219GJ1985PLC025132 and registration number is 025132. Currently Company is involved in the business activities of Manufacture of pesticides and other agrochemical products. Company’s Total Operating Revenue is Rs. 16449.00 Cr. and Equity Capital is Rs. 153.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Agro Chemicals/Pesticides3-11, G.I.D.C., Valsad District Gujarat 396195upl.investors@upl-ltd.com
http://www.upl-ltd.com
Management
NamePosition Held
Mr. Rajnikant D ShroffChairman Emeritus
Mr. Jai ShroffChairman & Group CEO
Mr. Vikram ShroffVice Chairman
Mr. Raj TiwariWhole Time Director
Mr. Carlos PellicerNon Exe.Non Ind.Director
Mr. Hardeep SinghLead Independent Director
Dr. Vasant GandhiIndependent Director
Ms. Naina Lal KidwaiIndependent Director
Mr. Suresh KumarIndependent Director

UPL Ltd. Share Price Update

Share PriceValue
Today₹458.95
Previous Day₹457.30

Basic Stock Data of UPL Ltd

Market Cap 36,667 Cr.
Current Price 488
High / Low760/452
Stock P/E
Book Value 385
Dividend Yield2.06 %
ROCE14.3 %
ROE13.4 %
Face Value 2.00

Data Source: screener.in

Competitors of UPL Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sumitomo Chemical India Ltd 18,778 Cr. 376476/37056.4 50.60.32 %30.2 %23.4 % 10.0
Adarsh Plant Protect Ltd 27.7 Cr. 28.033.5/15.086.6 1.080.00 %5.44 %15.6 % 10.0
Meghmani Organics Ltd 2,212 Cr. 87.099.8/71.7 62.31.62 %16.1 %14.2 % 1.00
NACL Industries Ltd 1,468 Cr. 73.7105/67.8 26.90.93 %15.2 %18.0 % 1.00
Phyto Chem (India) Ltd 17.5 Cr. 40.855.6/25.8 20.20.00 %7.55 %1.90 % 10.0
Industry Average13.24 Cr121.128.632.220.57%14.9%14.62%6.4

UPL Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9,12612,7968,51510,56711,29715,86110,82112,50713,67916,5698,96310,1709,887
Expenses6,93110,1456,7458,6368,85312,4818,67510,09010,79513,8477,7479,0499,820
Operating Profit2,1952,6511,7701,9312,4443,3802,1462,4172,8842,7221,2161,12167
OPM %24%21%21%18%22%21%20%19%21%16%14%11%1%
Other Income14529-1517316225351293025818134
Interest7454216073595298005196448949067008711,191
Depreciation542576551566600642588608624727636657676
Profit before tax1,0531,6835971,0231,3462,0001,0641,2001,4951,391-62-389-1,666
Tax %10%19%-25%24%12%13%6%19%9%22%265%25%4%
Net Profit9441,3617497741,1791,7351,0059691,3601,080102-293-1,607
EPS in Rs10.3913.918.868.3012.2518.0511.6810.8414.4810.552.21-2.52-16.21

UPL Ltd Quarterly Chart

UPL Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7,6719,18610,77112,09114,04816,31217,37821,83735,75638,69446,24053,57645,589
Expenses6,3217,5318,7539,72811,70013,34613,96618,02428,98430,34236,71143,38040,463
Operating Profit1,3511,6542,0182,3632,3482,9663,4123,8136,7728,3529,52910,1965,126
OPM %18%18%19%20%17%18%20%17%19%22%21%19%11%
Other Income857230-11149363351-197-5156291464512
Interest4154294855177047357839631,4812,0602,2952,9633,668
Depreciation2923544074256766726758802,0122,1732,3592,5472,696
Profit before tax7299441,1571,4101,1171,9222,3051,7732,7644,1814,9665,150-726
Tax %18%22%19%17%15%10%12%11%21%16%11%14%
Net Profit5617739571,1879521,7332,0301,5752,1783,4954,4374,414-718
EPS in Rs8.0211.6714.7717.7914.6222.7126.5119.5223.2437.5847.4647.56-5.97
Dividend Payout %21%14%18%19%23%20%20%27%26%27%21%21%

UPL Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)37.79%23.80%24.03%-19.80%82.04%17.14%-22.41%38.29%60.47%26.95%-0.52%
Change in YoY Net Profit Growth (%)0.00%-13.99%0.23%-43.83%101.84%-64.90%-39.55%60.70%22.18%-33.52%-27.47%

UPL Ltd Growth

Compounded Sales Growth
10 Years:19%
5 Years:25%
3 Years:14%
TTM:-14%
Compounded Profit Growth
10 Years:17%
5 Years:12%
3 Years:20%
TTM:-114%
Stock Price CAGR
10 Years:15%
5 Years:-2%
3 Years:-3%
1 Year:-34%
Return on Equity
10 Years:16%
5 Years:15%
3 Years:15%
Last Year:13%

UPL Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9289868686101102102153153153150150
Reserves4,0814,5575,1625,7755,8037,2149,06714,61319,12920,73424,50829,69428,713
Preference Capital0000082000000
Borrowings3,3894,2033,3493,2815,2586,3616,63829,13929,38824,51926,74623,98534,936
Other Liabilities2,7133,4874,1625,1435,7226,5367,14818,58119,75823,35929,19632,28627,656
Total Liabilities10,27512,33612,75914,28416,86920,21222,95562,43568,42868,76580,60386,11591,455
Fixed Assets3,2233,4893,8214,0313,8624,0714,43732,14935,32134,76536,19338,71340,438
CWIP3063782285834847921,3191,8552,0732,1172,5012,8181,314
Investments7951,0257377643353781,0347085586181,9221,6241,840
Other Assets5,9527,4447,9738,90612,18814,97116,16527,72330,47631,26539,98742,96047,863
Total Assets10,27512,33612,75914,28416,86920,21222,95562,43568,42868,76580,60386,11591,455

UPL Ltd Reserves and Borrowings Chart

UPL Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1621,6991,4411,4091,3962,5852,8392,3568,7397,2126,4967,751
Cash from Investing Activity -680-765-427-463-1,734-1,022-2,059-31,282-2,666-2,426-3,575-1,354
Cash from Financing Activity -178-72-1,680-991469140-80128,893-2,175-6,713-1,921-6,227
Net Cash Flow-696862-667-451311,703-21-333,898-1,9271,000170

UPL Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days116107109115133127127195121115121124
Inventory Days169161166178204194204306153180216187
Days Payable135163181195213228255330199244274236
Cash Conversion Cycle1501049598124937617175516476
Working Capital Days12210085781139910716872697368
ROCE %16%16%19%21%19%22%21%10%10%13%14%14%

UPL Ltd Financial Efficiency Indicators Chart

UPL Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters27.96%27.96%27.96%28.24%28.45%28.96%28.96%30.74%32.34%32.34%32.34%32.34%
FIIs37.83%37.87%35.13%34.27%35.30%36.45%35.57%37.18%38.69%37.96%33.57%34.39%
DIIs15.83%16.17%17.97%18.65%17.80%16.45%17.19%16.19%14.39%15.24%17.27%16.82%
Government0.10%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public18.28%18.00%18.95%18.84%18.45%18.14%18.28%15.87%14.54%14.44%16.81%16.44%
No. of Shareholders1,75,4371,93,7602,37,5552,45,1352,40,0122,45,3702,69,1682,53,0542,53,5482,80,8193,83,2994,08,028

UPL Ltd Shareholding Pattern Chart

No. of UPL Ltd Shareholders

UPL Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF91055770.28489.61
UTI Nifty 50 ETF25215270.28135.58
SBI Arbitrage Opportunities Fund12922000.2669.48
Nippon India ETF Nifty 50 BeES10752050.2857.81
UTI Nifty 50 Index Fund8100010.2843.55
DSP Nifty 50 Equal Weight Index Fund3419761.7918.39
SBI Nifty Index Fund3273750.2917.6
SBI Nifty50 Equal Weight Index Fund2904941.7315.62
Nippon India Arbitrage Fund2158000.0911.6
Invesco India Arbitrage Fund1638000.089.62

UPL Ltd ROCE Trend

UPL Ltd EPS Trend

UPL Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)45.7945.8736.4023.2419.52
Diluted EPS (Rs.)45.7945.8736.4023.2419.52
Cash EPS (Rs.)90.7287.0873.5454.7347.86
Book Value[Excl.RevalReserv]/Share (Rs.)432.57344.08282.27256.31356.25
Book Value[Incl.RevalReserv]/Share (Rs.)432.57344.08282.27256.31356.25
Revenue From Operations / Share (Rs.)714.35604.44505.80467.39428.18
PBDIT / Share (Rs.)142.31128.24112.5589.9079.47
PBIT / Share (Rs.)108.3597.4084.1463.5962.22
PBT / Share (Rs.)66.5763.1654.1036.0934.49
Net Profit / Share (Rs.)56.7656.2545.1428.4330.61
NP After MI And SOA / Share (Rs.)47.6047.4037.5323.2229.24
PBDIT Margin (%)19.9221.2122.2519.2318.56
PBIT Margin (%)15.1616.1116.6313.6014.53
PBT Margin (%)9.3110.4410.697.728.05
Net Profit Margin (%)7.949.308.926.087.14
NP After MI And SOA Margin (%)6.667.847.414.966.82
Return on Networth / Equity (%)13.2916.7216.0310.8910.13
Return on Capital Employeed (%)13.6413.6712.679.116.76
Return On Assets (%)4.034.384.072.532.36
Long Term Debt / Equity (X)0.750.991.241.681.79
Total Debt / Equity (X)0.851.191.321.761.96
Asset Turnover Ratio (%)0.370.360.260.250.46
Current Ratio (X)1.451.411.531.751.64
Quick Ratio (X)0.960.941.051.281.08
Inventory Turnover Ratio (X)1.451.411.150.901.48
Dividend Payout Ratio (NP) (%)21.0321.0715.9518.4627.29
Dividend Payout Ratio (CP) (%)12.2712.769.088.6517.16
Earning Retention Ratio (%)78.9778.9384.0581.5472.71
Cash Earning Retention Ratio (%)87.7387.2490.9291.3582.84
Interest Coverage Ratio (X)3.604.274.184.644.21
Interest Coverage Ratio (Post Tax) (X)2.493.022.792.893.09
Enterprise Value (Cr.)76295.7583275.0571528.3050198.6078220.00
EV / Net Operating Revenue (X)1.421.801.851.403.58
EV / EBITDA (X)7.158.498.317.3019.30
MarketCap / Net Operating Revenue (X)1.001.271.270.692.23
Retention Ratios (%)78.9678.9284.0481.5372.70
Price / BV (X)2.002.722.741.533.31
Price / Net Operating Revenue (X)1.001.271.270.692.23
EarningsYield0.060.060.050.070.03

UPL Ltd Profitability Ratios (%)

UPL Ltd Liquidity Ratios

UPL Ltd Liquidity Ratios (%)

UPL Ltd Interest Coverage Ratios (X)

UPL Ltd Valuation Ratios

Fair Value / Intrinsic Value of UPL Ltd

Fair Value: ₹789.79

The stock is undervalued by 61.84% compared to the current price ₹488

*Investments are subject to market risks

Strength and Weakness of UPL Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 16.25%, which is a positive sign.
  2. The company has higher reserves (13,773.08 cr) compared to borrowings (6.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (24.85 cr) and profit (74.54 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 83.14 and average Dividend Yield of 15.21%.
  2. The stock has a high average Working Capital Days of 96.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 98.08, which may not be favorable.

Should I Buy UPL Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in UPL Ltd:
    1. Net Profit Margin: 7.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.64% (Industry Average ROCE: 18.32%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 2.49
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.96
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 25.86)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.85
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in UPL Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE