UPL hits 18-month high after Jefferies initiates coverage with buy

Crop protection products maker UPL shares hit a 18-month high of Rs 851 on Tuesday after global brokerage house Jefferies initiated coverage with a buy rating on the stock and expects to increase by 18 percent to Rs 1,000 apiece.

The stock gained 0.3 percent intraday. At 11:22 hours IST, it was quoting at Rs 850, up Rs 1.70, or 0.20 percent on the BSE.

Jefferies is constructive on the scale benefits, product mix & synergies from US-based agri-pesticides maker Arysta LifeScience Inc which acquired by the company for $4.2 billion in July 2018.

Arysta’s acquisition could catapult UPL into the number 5th position globally, it said, adding over FY18-21, it estimates sales/EPS to register CAGR of 33 / 21 percent.

The brokerage believes interim hiccups should be ironed out, aided by solidification of core business and synergies.

Post recent uptick, stock might trade rangebound for a brief period, according to Jefferies.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
First Published on Feb 26, 2019 11:40 am

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