Views on UPL 2QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on UPL 2QFY2016 Results:

"For 2QFY2016, the company posted a 4.2% growth in sales to end the period at INR 2729cr. Its key markets India and Latin America posted a yoy 5% and 8% respectively. ROW and USA, posted a yoy growth of 12% and 10% respectively. The only market which posted a dip was Europe, which posted a 10% yoy dip in the sales. The volume growth during the period was 13% yoy, while price increases contributed around 2% yoy. On the other hand, Exchange rate dipped by 11% yoy.

On operating front, the Gross margins came in at 49.9% V/s 50.5% in 2QFY2015, which aided the OPM to come in at 16.5% V/s 16.7% in 2QFY2015. This led the company to post a 12.3% yoy dip in the PBT excluding the extra-ordinaries and profits from associates and subsidiaries. However, a higher share of profitability from associates and subsidiaries the company posted an Adj. PAT of INR 190cr V/s INR 180cr, a yoy growth of 5.8%. We maintain our ACCUMULATE rating on the stock with a price target of INR 510."

Shares of UPL Limited was last trading in BSE at Rs.448.25 as compared to the previous close of Rs. 463.15. The total number of shares traded during the day was 300638 in over 9612 trades.

The stock hit an intraday high of Rs. 467.35 and intraday low of 440.4. The net turnover during the day was Rs. 137105031.

Source : Equity Bulls

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