UPL Limited, formerly known as United Phosphorus Limited, is a leading producer of agrochemicals and crop protection products in the world.
The market capitalisation of UPL Limited, as of June 22, 2018, is a little over Rs.32,500 crore.
Company’s Wealth and Recent Performance
- For the March quarter of the financial year 2017-18, UPL Limited reported its consolidated revenue from operations to be at Rs.5,691 crore. This is an increase of more than 30% over the revenues reported for December quarter.
- Similarly, for the year ended on March 31, 2018, the company disclosed its income to be Rs.17,506 crore, in comparison to the Rs.16,680 crore reported for the previous financial year. This translates into a 7% growth in revenues for the year.
- A corresponding increase in profit after tax was also observed for the year. For the financial year 2017-18, the net profit stood at Rs.2,123 crore, in comparison to the Rs.1,752 crore reported for the previous year. As for the March quarter, the profit was revealed to be Rs.773 crore.
- The earnings per share (EPS) for the quarter was Rs.14.47 and the same for the entire year was Rs.39.79.
- The company’s total liabilities for the year ended were reported to be worth Rs.13,855 crore. Of these, non-current liabilities are worth Rs.6,213 crore - a small increment over the previous fiscal.
UPL Limited Stock Trends in 2018
- On January 2, 2018, the opening price of UPL Limited scrip was Rs.757.55 on the National Stock Exchange. The price rose steadily over the course of the month to cross the psychological barrier of Rs.800. The shares changed hands at levels above Rs.800 for a couple of trading sessions before shedding these gains in the subsequent weeks.
- The share price of UPL Limited took a tumble in the final week of January driven by turbulence in the international markets and the news of interest rate hike by the Federal Reserve. This fall was observed for the most of February as well with the scrip shedding a little over 15% in less than two weeks. In this period, the stock price went down to be traded at levels above Rs.670. However, the prices recovered in the final week as the shares once again found themselves in the Rs.700 region.
- Things didn’t change considerably in the month of March. Investors exercised caution and the UPL Limited share price maintained its bearings at levels around Rs.720. In the closing moments of the month, the prices rose to cross the Rs.750 mark again. In the month of April, the UPL shares were traded at this level without incurring any major losses.
- It wasn’t until May that the price went on a downward path again. However, this time, the fall wasn’t as severe as the one observed in February. The shares touched the Rs.690 mark and descended further to be traded at levels around Rs.680. However, once again, the prices recovered towards the end of the month. The closing price on May 31 was Rs.707.60 on the NSE.
- In June, the prices reached their lowest levels since 2016. The scrip hit its 52-week low at Rs.632.20 with the shares trading at levels well below Rs.650.
UPL Limited Stock Trends in 2016 and 2017
- At the start of January 2016, the share price of UPL Limited was fluctuating at levels around Rs.435. Over the course of the month, the price went down by 5% and shares were traded at levels above Rs.405. The prices dipped further in February with the scrip touching the Rs.380 mark. After making losses for the first two months, the shares started to recover in early March. This bullish trend marked the start of a bull year which lasted for the entire year.
- In March, UPL Limited share price ascended back to its previous levels of Rs.450. This was followed by another remarkable rise in the month of April and this time, the scrip crossed the Rs.500 mark. On April 29, the closing price of UPL shares was Rs.537.90 on the NSE. This rise was driven by the splendid performance of the company in FY16, whose results were revealed around that time.
- The prices rose further in May with the shares inching closer to the Rs.600 mark. Through the month, the shares changed hands at values well above the Rs.550 mark. There were a couple of instances during intraday sessions when the price did cross Rs.600 but the stocks failed to sustain at that level. A similar trend was seen in the month of June as well, with the scrip crossing Rs.600 and staying there for a short while before retreating back into the Rs.500 region. A final dividend of 250% was also announced in late June. It wasn’t until July that the prices rose again and this time around, the UPL Limited shares crossed the Rs.600 mark for good.
- The stock price of UPL Limited continued to soar in August and September as the shares maintained their heading steadily above the Rs.600 mark. The rally didn’t stop until the demonetisation in November when the shares lost a little over 10% in a span of one week. However, the prices still managed to stay above Rs.600. The shares rose again in December, only to shed those gains just as quickly as it made them. The closing price at the end of 2016 was Rs.647.
- 2017 started on a positive note for the investors as the stock price of UPL Limited rose once again. By late January, the scrip had crossed Rs.700. Through most of February and March, the shares were traded at levels above this value without any major nosedives. On March 31, 2017, the shares closed the trading at Rs.726.
- The UPL Limited share price commenced another bull run in April and this time, the shares crossed the Rs.800 mark. This bullish behaviour was seen in the month of June as well with the investors making good returns in this period. With respect to its value at the start of the year, the stocks managed to deliver returns of more than 30% by June. A final dividend of 350% was also announced in this period.
- The prices rose further in July and it continued to do so until early August. The shares crossed the psychological barrier of Rs.900 and touched their 52 week high at Rs.902.50. This was immediately followed by a bear run which lasted for the remainder of the year. By late September, the shares had retreated back to their levels above Rs.800 and by November, they were done in the Rs.700 region. The closing price at the end of the year was Rs.763.30.
Should you invest in UPL Limited?
- UPL Limited is one of the largest agrochemicals company in India. It provides crop protection solutions to farmers in India and all across the world. The company is fundamentally strong and has fared well financially over the years.
- Considering that India’s economy depends on agriculture to a great extent, UPL Limited plays an important role in ensuring that farmers have good yields every season. Therefore, the demand for the products is certainly assured and it is safe to bank on its future prospects.
- Since the start of 2016, the share price of UPL Limited has grown by a little over 40% (as of late June). The scrip is currently bearish, suggesting that this may be a good time to invest in the shares from a long-term perspective. Alternately, one can also look at mutual funds houses that have invested in this share. However, it is strongly recommended that you do your own research before investing in this stock.
UPL Limited is a multi-national company based in India. It is known for its comprehensive crop protection solutions, ranging all the way from pre-harvest to post-harvest. The company operates primarily in two segments - agricultural activity and non-agricultural activity. The first one includes the production of seeds, pesticides, agrochemical products and other solutions which help farmers produce better yields and harvest every season. The second one involves production and marketing of industrial chemicals and other products. The company’s market presence spans across more than 130 countries which is further supported by 33 manufacturing units in 11 nations.
History of the Company
The roots of the company can be traced back to the year 1969, when an emergent company was commissioned with Rs.4 lakh to produce Red Phosphorous. In 1972, the company was awarded the President’s Gold Seal for Research and Development. Over the course of next four decades, this small-scale business was transformed into a multinational corporation with the help of comprehensive product offerings and strategic acquisitions. The company went public in 1984 which helped it raise the much-needed capital for further expansion.
Management of the Company
Mr. Rajnikanth Shroff - Chairman and Managing Director
Mr. Shroff has often been dubbed as the Crop Protection King of India and all for the right reasons. Right from the beginning, he was passionate about Chemistry. Eventually, he graduated from the Bombay University in Chemistry and moved on to work in a plant in the U.K, where he devised a process of manufacturing mercury salts. He built on this knowledge and in 1969, he led the way to manufacture Red Phosphorous in India. In the 1980s, It was under his leadership that the company launched a wide variety of crop protection products. Needless to mention, he has been a key figure in the growth of UPL Limited. He has been honoured with several awards, the most recent of which is the AGROW Lifetime Achievement Award in September 2015.
Mr. Jaidev Shroff - Group CEO and Promoter-Director
Mr. Jaidev is the Chief Executive Officer of UPL Limited and also the Vice-Chairman of Advanta. He has been a part of the agriculture sector for more than 28 years now and has held several key positions in India and internationally. He has played a key role in transforming the company from a domestic player to a global leader. He is also an active member of several key forums which work towards global development. Some of these are World Economic Forum’s Grow Africa and Grow Asia initiatives, Chicago Council, Sustainable Agriculture and Global Food Security initiative, et cetera.
Mr. Kalyan Banerjee - Whole-time Director
Mr. Banerjee is the whole-time director at UPL Limited and also serves as the Chairman of United Phosphorus Bangladesh Limited. He graduated from the Indian Institute of Technology as a Chemical Engineer. He has played an instrumental role in the development of Vapi’s infrastructure, in addition to the establishment of one of the largest industrial belts in the country.
UPL Limited Listings in NSE, BSE, and Indices
The shares of UPL Limited are available for trading on the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective codes for the same are as follows:
- NSE Code - UPL
- BSE Code - 512070
- ISIN - INE628A01036
- Sector - Chemicals
Coming to the stock market indices, the company forms a part of the following:
- NIFTY 100
- NIFTY 50
- NIFTY 200
- NIFTY 500
- S&P BSE 200
- S&P BSE 100
- S&P BSE AllCap
- S&P BSE LargeMidCap
- S&P BSE Greenex
UPL House, 610 B/2,
Off Western Express Highway
Bandra (East), Mumbai - 400-051
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