Top Gainer on Nifty, UPL share price gains 2% today; Jefferies recommends BUY
UPL's Q4FY21 results were better on all parameters and ahead of estimates, with sales/ PAT at 15%/45% YoY, say Jefferies. Net D/EBITDA was at 2.2x as of Mar'21 (JEFe at 2.5x). Globally, a rise in crop prices is likely to boost farmer income, auguring well for UPL (potential price hikes). UPL Management expects FY22 sales growth at 7-10%, with EBITDA at 12-15%; Net D/EBITDA at < 2.0x. Factoring Q4 / FY21 beat, robust crop prices, deleveraging, positive management comments and guidance, highlights Jefferies
Globally, a rise in crop prices (eg: soyabean, crop, corn) is expected to boost farmer income, which could augur well for UPL's business (potential price hikes): Reuters