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UPL Ltd Stock Analysis

Large Cap
Evaluated by 4933 users | BSE: 512070 | NSE: UPL |
Pesticides & Agrochemicals

UPL is global leader in global food systems as one of the top five agricultural solutions companies worldwide. It is the 5th agrochemical company in the world, after the acquisition of Arysta LifeScience. The company is present in many countries. The company has market access of the...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
UPL Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.66%11.61%12.37%14.29%17.11%15.56%19.28%17.63%8.32%6.26%
Value Creation Index -0.09-0.16-0.110.030.230.120.390.27-0.40NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,7617,6719,18610,77112,09114,04816,31217,37821,83735,756
Y-o-Y Gr. Rt.-33.2%19.7%17.3%12.3%16.2%16.1%6.5%25.7%63.7%
Adjusted EPS (Rs.) 7.687.7411.2214.5518.2616.9924.9126.9225.2525.32
Y-o-Y Gr. Rt.-0.8%45%29.7%25.5%-7%46.6%8.1%-6.2%0.3%
Book Value per Share (Rs.) 53.7960.2469.9781.6291.1532.496.54119.86192.35213.02
Adjusted Net Profit 5325367459361,1741,0931,8942,0571,9291,935
Net Op. Cash Flow (Rs. Cr.) 8151621,6991,4411,4091,3962,5852,8392,3568,739
Debt to Cash Flow from Ops 3.2920.932.472.322.333.772.462.3412.373.63
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
UPL Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 22.5%24.2%29.9%63.7%
Adjusted EPS 14.2%6.8%0.6%0.3%
Book Value per Share 16.518.530.210.8
Share Price 20.1% 10.3% -0.7% -19.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.8313.5716.918.9121.1418.628.5224.8316.1512.48
Operating Profit Margin (%) 18.5517.7917.818.5919.518.6419.7320.2318.6219.87
Net Profit Margin (%) 9.827.577.748.559.898.4711.7712.429.166.53
Debt to Equity 0.720.810.90.640.562.520.860.721.981.94
Working Capital Days 196206221217224235243209267211
Cash Conversion Cycle 82989076778681348244
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 27.88%
Institutions 53.08%
Non-Institutions 10.46%
Others 8.27%
Pledged *1.632.322.322.322.322.322.327.961.921.92
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of UPL Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that UPL Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of UPL Ltd's performance infers:

UPL Ltd earnings have grown by 6.8%, whereas share price has appreciated 10.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of UPL Ltd share prices over the last 10 years. Here is what we found out:

UPL Ltd share price has appreciated 14% annually over the past ten years.

UPL is global leader in global food systems as one of the top five agricultural solutions companies worldwide. It is the 5th agrochemical company in the world, after the acquisition of Arysta LifeScience. The company is present in many countries. The company has market access of the world’s food basket and is focused on ushering growth and progress for the complete agricultural value chain including growers, distributors, suppliers and innovation partners. As a new company, the

UPL is global leader in global food systems as one of the top five agricultural solutions companies worldwide. It is the 5th agrochemical company in the world, after the acquisition of Arysta LifeScience. The company is present in many countries. The company has market access of the world’s food basket and is focused on ushering growth and progress for the complete agricultural value chain including growers, distributors, suppliers and innovation partners. As a new company, the company offer an integrated portfolio of both patented and post-patent agricultural solutions for various arable and specialty crops, including biological, crop protection, seed treatment and post-harvest solutions covering the entire crop value chain.

Business area of the company

The Company is engaged into manufacturing of agrochemicals, industrial chemicals and production and sale of vegetable and field crops.

Technologies

  • Seeds
  • Crop Protection
  • Plant Stress and Stimulation
  • Post Harvest
  • Soil & Water Technologies
  • Aquatics

Services

  • ProNutiva
  • Farmer Engagement

Awards

  • 2008: Rolta Corporate Award 2008
  • 2009: Lifetime Achievement Award from CHEMXCIL
  • 2010: Finalist Nomination Award of Ernst & Young Entrepreneur of the Year
  • 2012: ‘Agriculture Leadership’ award for Rajju Shroff and Vikram Shrof
  • 2013: Ernst & Young ‘Entrepreneur of the Year’ award
  • 2014: ESR Award for UPL Mexico.
  • 2016: Piyush Goyal, Minister of States for Power felicitates UPL Jhagadia site, the winner of Golden Peacock awards 2016.
  • 2017: UPL Jhagadia won the silver ‘EKDKN Exceed Award 2017’.
  • 2018: Frost & Sullivan - TERI Sustainability 4.0 Awards 2018 - 1st Runner-up, Challengers category
  • 2018: Frost & Sullivan and TERI Sustainability 4.0 Awards 2018 - Challengers Award - Large Business, Process Sector
  • 2018: Gold Award ‘Brands for Environment’ for year 2018 - Top 10 Environment Friendly Factories in the country
  • 2018: Gold Award ‘Friendly Green Factory’ for Year 2018 - ‘TOP 20 Clean and Green Factory’ in Country
  • 2018: Gold Award ‘Sustainable development’ for Year 2018 - ‘Top 20 Factory for sustainable development, innovation and Systems’ in the country
  • 2018: Outstanding business award, India Manufacturing Excellence Award (IMEA) 2018 by Frost & Sullivan - Gold Certificate of Merit
  • 2018: India Green Manufacturing Challenge (IGMC) by Frost & Sullivan - Silver Award
  • 2018: National Awards for Manufacturing Competitiveness, (NAMC 2017- 2018) - Gold medal.
  • 2019: Frost and Sullivan Gold Award for Excellence in Manufacturing Practices in the category of Process Sector, Mega Large Business 
  • 2019: Frost & Sullivan-TERI Sustainability 4.0 Awards 
  • 2019: National Awards for Manufacturing Competitiveness (NAMC) ‘Gold’ Medal
  • 2019: Quality Circle Forums of India Awards: Won Golds and Silvers across India operations
  • 2019: The South Gujarat Chamber of Commerce & Industry (SGCCI) Gold Award
  • 2019: Platinum Award in Occupational Health & Safety Management by Apex India Foundation
  • 2019: Gold Peacock Occupational Health and Safety Awards
  • 2019: Best Health Care Institution of the year award to Sandra Shroff ROFEL College of Nursing
  • 2020: Awarded an Agrow Award in the category of 'Best Company From an Emerging Region' during the 2020 Crop Science Forum & Awards.

Milestones

  • 1969: Started manufacturing Red Phosphorus.
  • 1972: President’s Gold seal for Research and Development.
  • 1976: Entry into Agchem.
  • 1976: Started exporting products.
  • 1980: Started production of yellow Phosphorus, Ankleshwar.
  • 1984: Listed on India’s stock exchanges.
  • 1994: acquisition of MTM Agrochemical, UK-First international acquisition operation commenced in Jhagada.
  • 1996: Started Caustic Chlorine Plant.
  • 1997: Dervrinol- ROW.
  • 2000: Product acquisition of Dervrinol Japan by UPL.
  • 2004: Product acquisition of Surflan USA, by UPL.
  • 2004: Product acquisition of Ultra Blazer, Worldwide, by UPL.
  • 2004: Product acquisition of Lenacil, Chloridazon, Europe, by UPL.
  • 2005: Cequisa, Europe.
  • 2005: SWAL acquisition.
  • 2005: Reposa, Argentina.
  • 2005: First EMR registered (SAAF).
  • 2006: Cerexagri.
  • 2006: Advanta.
  • 2006: CropServe.
  • 2007: EvoFarm, Colombia.
  • 2007: Icona.
  • 2008: Evofarm, Group.
  • 2010: Acquired RiceCo for leveraging the global sales and marketing network for the rice segment.
  • 2010: Acquired Manzate brand, strengthening its fungicide portfolio.
  • 2011: DVA Agro, with 51% stake.
  • 2012: Acquired DVA Agro and SIB for gaining entry into Brazil
  • 2013: Neo-Fog, SA & JPB Courtage, France.
  • 2014: Increase stake in UPL Brazil (73%).
  • 2014: Crossed Rs 100 billion mark in revenues.
  • 2014: Optima Farm Solution Ltd, India.
  • 2015: Increase stake in UPL Brazil (100%).
  • 2015: Sinagro Stake- 40%.
  • 2015: Close to $2 billion in revenue.
  • 2016: Crossed $2 billion in revenues.
  • 2016: Crossed 5000 mark in registration.
  • 2016: Merger with former associate, Advanta Seeds.
  • 2017: $2.5 billion in revenue.
  • 2018: UPL announces acquisition of Costa Rica’s Bioquim Group.
  • 2019-20: Acquisition of Laoting Yoloo Bio-technology Co. Ltd.
  • 2019-20: Launched an initiative for using drones, Unmanned Aerial Vehicles (UAVs) and other aerial/vision technologies to make recommendation to growers.
  • 2019-20: Launched Adarsh Farm Service (AFS) in India, which uses state-of-the-art spraying machines specially adapted to small farms.
  • 2019-20: Acquired Arysta LifeScience in an all-cash $4.2 billion deal.
  • 2020-21: FIFA Foundation and UPL sign memorandum of understanding to promote sustainable development and education through football.
  • 2020-21: UPL joins The Heart Fund’s One Billion Hearts Platform to provide cardiovascular health for 1 billion people by 2030.
  • 2020-21: UPL joins The Heart Fund’s One Billion Hearts Platform to provide cardiovascular health for 1 billion people by 2030.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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