Stock Market today: UPL share price declined more than 5% during the intraday trades on Tuesday after Q4 Results that were declared on Monday but after the trading hours. UPL also declared Dividend. Should you Buy, Sell or Hold the stock?
UPL share price movement
UPL Ltd share price opened at ₹676.15 on the BSE on Tuesday and at the time of opening UPL share price was slightly higher than previous days closing price of ₹675.95. The UPL share price thereafter though surged to intraday highs of ₹680.35, however thereafter the UPL share price slipped to intraday lows of 641.55. Thus meant a decline of more than 5% during the intraday trades for the UPL share price .
UPL dividend details
The UPL board has recommended a dividend of Rs. 6/-per equity share on equity shares worth Rs. 2/-each (for fully paid-up and partially paid-up equity shares).
Taking into account both the declared dividend and the share’s face value, the declared dividend equals a 300% dividend.
UPL analyst Views
Nuvama Institutional Equities UPL in Q4FY25 and FY25 reported an industry-leading performance with a strong volume recovery, as per Nuvama. Improvement in working capital (by 33 days), astute debt reduction ($1billion) and EBITDA growth guidance of 10–14%, going into FY26, mark strong scalars and vectors for UPL, as per Nuvama
Nuvama though has been moderating FY26 estimates marginally to factor in a gradual pickup in volumes and reckon FY27 shall log accelerated growth led by the NPP portfolio ($1.5bn target by FY30), specialty chemicals business and global crop protection business. However they maintain ‘BUY’ ratings and say that “We are reducing FY26 estimated Earnings per share or EPS by 14.0% and raising FY27 EPS by 5%, yielding a revised Target price of ₹781, valuing UPL at 13x Q4FY27E estimated EPS.
Elara Securities India Pvt Ltd – Elara post UPL Q4 results said that the global destocking is over. But with large agrochemical supplies from China coming at subdued prices, industry growth may be led by volume in the short term.
UPLL has aggressively reduced its cost structure and shrunk working capital requirement, both of which are likely to continue in FY26 as well as per Elara. Elara has reduced its EBITDA estimates by 7% for FY26 and 6% for FY27 to factor in low product realizations. However Elara is positively surprised by the extent of reduction in working capital and hence has upgraded its target multiple from 6 times to 7 times Enterprise value by Ebitda estimates on FY27 estimated financials. They thus raise their Target price to ₹749 (from ₹664 earlier).
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
