NSEI:UPL

Stock Analysis Report

Executive Summary

UPL Limited manufactures and markets crop solutions worldwide.

Rewards

Trading at 48.3% below its fair value

Earnings are forecast to grow 25.87% per year

Pays a high and reliable dividend of 1.74%

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (4.1%) are lower than last year (10.4%)



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has UPL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UPL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.2%

UPL

1.3%

IN Chemicals

-2.2%

IN Market


1 Year Return

-50.8%

UPL

-14.6%

IN Chemicals

-30.7%

IN Market

Return vs Industry: UPL underperformed the Indian Chemicals industry which returned -12.5% over the past year.

Return vs Market: UPL underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

UPLIndustryMarket
7 Day-2.2%1.3%-2.2%
30 Day-41.4%-21.7%-25.9%
90 Day-48.2%-18.7%-30.5%
1 Year-50.4%-50.8%-11.0%-14.6%-29.3%-30.7%
3 Year-35.3%-37.1%11.9%5.0%-18.8%-23.3%
5 Year5.8%1.0%63.6%49.4%-8.7%-13.6%

Price Volatility Vs. Market

How volatile is UPL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is UPL undervalued compared to its fair value and its price relative to the market?

47.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UPL (₹305.75) is trading below our estimate of fair value (₹591.91)

Significantly Below Fair Value: UPL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UPL is poor value based on its PE Ratio (17.1x) compared to the Chemicals industry average (7.6x).

PE vs Market: UPL is poor value based on its PE Ratio (17.1x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: UPL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: UPL is overvalued based on its PB Ratio (1.6x) compared to the IN Chemicals industry average (0.8x).


Next Steps

Future Growth

How is UPL forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UPL's forecast earnings growth (25.9% per year) is above the savings rate (6.5%).

Earnings vs Market: UPL's earnings (25.9% per year) are forecast to grow faster than the Indian market (19.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UPL's revenue (8.6% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: UPL's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UPL's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has UPL performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UPL has a large one-off loss of ₹7.5B impacting its December 31 2019 financial results.

Growing Profit Margin: UPL's current net profit margins (4.1%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: UPL's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: UPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UPL had negative earnings growth (-31%) over the past year, making it difficult to compare to the Chemicals industry average (10%).


Return on Equity

High ROE: UPL's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is UPL's financial position?


Financial Position Analysis

Short Term Liabilities: UPL's short term assets (₹265.0B) exceed its short term liabilities (₹162.5B).

Long Term Liabilities: UPL's short term assets (₹265.0B) do not cover its long term liabilities (₹303.1B).


Debt to Equity History and Analysis

Debt Level: UPL's debt to equity ratio (173.4%) is considered high.

Reducing Debt: UPL's debt to equity ratio has increased from 54.7% to 173.4% over the past 5 years.

Debt Coverage: UPL's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: UPL's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: UPL has a high level of physical assets or inventory.

Debt Coverage by Assets: UPL's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is UPL's current dividend yield, its reliability and sustainability?

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UPL's dividend (1.74%) is higher than the bottom 25% of dividend payers in the Indian market (0.94%).

High Dividend: UPL's dividend (1.74%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: UPL's dividends per share have been stable in the past 10 years.

Growing Dividend: UPL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), UPL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UPL's dividends in 3 years are forecast to be well covered by earnings (26.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.0yrs

Average management tenure


CEO

Jai Rajnikant Shroff (54yo)

no data

Tenure

Mr. Jaidev Rajnikant Shroff, also known as Jai, B.Sc., is a Promoter of Pacific Seeds (Thai) Ltd. Mr. Shroff has been Group Chief Executive Officer and Non-Executive Director at UPL Limited (formerly known ...


Leadership Team

NamePositionTenureCompensationOwnership
Rajnikant Shroff
Executive Chairman & MDno data₹133.30m0.0020% 4.6m
Jaidev Rajnikant Shroff
Global CEO & Non-Executive Directorno datano data1.07% 2.5b
A. Balaji
Chief Information Officerno datano datano data
Rohit Kumar
Global General Counselno datano data0.00051% 1.2m
Sanjay Singh
Global Chief Human Resource Officerno datano datano data
K. Srivastava
Chief Operating Officer of Specialty Chemicalsno datano datano data
Arun Ashar
Director of Finance & Executive Director27.08yrs₹30.30mno data
Farokh Hilloo
Chief Commercial Officerno datano data0.0029% 6.8m
Vidya Kaushik
Global Head of Corporate Affairs & Industry Relations9yrsno datano data
Anand Vora
Global Chief Financial Officer6.67yrsno data0.0033% 7.7m

8.0yrs

Average Tenure

56yo

Average Age

Experienced Management: UPL's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajnikant Shroff
Executive Chairman & MDno data₹133.30m0.0020% 4.6m
Jaidev Rajnikant Shroff
Global CEO & Non-Executive Directorno datano data1.07% 2.5b
Arun Ashar
Director of Finance & Executive Director27.08yrs₹30.30mno data
Sandra Shroff
Non-Executive Vice Chairmanno datano datano data
Pradeep Goyal
Non-Executive Independent Director18.25yrs₹1.40mno data
Reena Ramachandran
Independent Non Executive Director16.5yrs₹1.28mno data
Hardeep Singh
Independent & Non-Executive Director5.17yrs₹1.33m0.0064% 14.9m
Vikram Shroff
Director14yrsno data0.88% 2.1b
Vasant Gandhi
Independent & Non-Executive Director4.42yrs₹1.33mno data
Usha Rao-Monari
Additional Non-Executive & Independent Director0.42yrno datano data

15.3yrs

Average Tenure

65yo

Average Age

Experienced Board: UPL's board of directors are seasoned and experienced ( 15.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

UPL Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UPL Limited
  • Ticker: UPL
  • Exchange: NSEI
  • Founded: 1969
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: ₹233.798b
  • Shares outstanding: 764.05m
  • Website: https://www.uplonline.com

Number of Employees


Location

  • UPL Limited
  • UPL House, 610 B/2
  • Bandra Village
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
512070BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1996
UPLNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1996

Biography

UPL Limited manufactures and markets crop solutions worldwide. The company operates in two segments, Agro Activity and Non-agro Activity. It offers sorghum, forages, corn, canola, sunflower, vegetable, rice, wheat, soya, pearl millet, oats, alfalfa, bio-fumigants, and mustard seeds. The company also provides herbicides; fungicides; insecticides and acaricides; seed treatment products; adjuvants; ProNutiva, a solution for crop protection; and bio-fertilizers, bio-stimulants, and biocontrol products. In addition, it offers post-harvest products; aquatic herbicides and algicides; industrial chemicals and other non-agricultural related products; and farmer advisory and education services, as well as farm services The company was formerly known as United Phosphorus Limited and changed its name to UPL Limited in October 2013. UPL Limited was founded in 1969 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 13:40
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.