Morgan StanleyUPL (Overweight)Target ₹951CMP: ₹763.8We incorporate the strong volume growth reported by UPLin Q2-F22and strong commentary on H2F22. We revise up our revenue, EBITDA and PAT forecasts by 4-7 per cent, 4-7 per cent and 9-12 per cent, respectively. The outlook comments by global crop protection companies are positive as higher acreages and higher soft commodity prices look set to drive stronger farm incomes, which in turn supports stronger volume growth for crop protection. UPL trades at a steep discount of about 20 per cent and 5 per cent on one-year forward consensus PE and EV/EBITDA, respectively, compared to its global peers. While Morgan Stanley affixed the base case price target is ₹951, for bull and bear cases, it price target of ₹1,296 and ₹642.

Source: The Hindu November 11, 2021 16:33 UTC