Jefferies has reiterated a Buy rating on UPL and raised its target price to ₹810, citing strong EBITDA performance, improved balance sheet health, and attractive valuations. The new target implies an upside from the current market price of ₹675.90.
UPL reported a 68% year-on-year jump in EBITDA for the March quarter, reflecting improved operational strength. However, the company’s profit after tax (PAT) was impacted by a one-off loss of ₹275 crore.
A key highlight in Jefferies’ note was UPL’s significant deleveraging. Net debt fell to $1.6 billion, compared to $3.0 billion in Q3 and $2.7 billion in March 2024. Healthy cash generation and tighter working capital management contributed to the balance sheet improvement.
As a result, the company’s Net Debt/EBITDA ratio improved sharply to 1.7x, down from 4.0x in FY24.
Despite a 35% rally in the stock year-to-date, UPL still trades at 13x FY26 estimated P/E, which Jefferies notes is 8% below its 10-year historical average, keeping the valuation attractive for further upside.
Disclaimer: This article is based entirely on brokerage commentary and public data. It does not constitute investment advice. Business Upturn and the author make no recommendation regarding any stock mentioned.
