At 10:30 am, the stock was up 1.5 percent at Rs 787.55 on the BSE.
Meanwhile, net profit rose 18 percent in the reporting quarter to Rs 937 crore and EBITDA grew 21 percent YoY to Rs 2,666 crore.
Inhouse manufacturing with backward integration linkages supported by effective raw material sourcing and overall cost management helped in keeping the EBITDA margins largely intact, despite the higher input costs and a sharp rise in freight charges, UPL said.
“We are confident of continuing this business momentum and ending the fiscal year 2022 on a strong note,” said Jai Shroff, CEO, UPL.
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Here’s what brokerages say:
Jefferies
Jefferies has a “buy” call on UPL shares and highlighted that the management expects debt repayment of $350-400 million in FY22. The brokerage firm noted that Q3 consolidated sales growth of 24 percent YoY is driven by price hikes and margin is dragged by higher freight and strategic investment in the digital platform. Jefferies has raised its FY23-25 earnings per share estimate by 2-3 percent.
CLSA
CLSA has a ‘buy’ rating on shares of UPL with a target price of Rs 1,100. The brokerage firm noted that the company is confident of growing its portfolio of sustainable and differentiated products, and also pointed out that the management expects its Q3 momentum to continue into Q4.
