HSBC has maintained its buy rating on UPL and raised its target price to ₹925 per share from ₹850, citing growing confidence in the long-term value creation potential of its seeds subsidiary, Advanta. The brokerage believes Advanta has emerged as a structurally strong platform within UPL’s portfolio, with consistent execution and superior growth metrics relative to peers.
According to HSBC, Advanta has delivered an impressive revenue and EBITDA CAGR over the past five years, materially outperforming other seed companies both in India and globally. The brokerage highlighted that Advanta’s differentiated product portfolio, strong presence in key geographies and disciplined execution have enabled it to build a resilient and scalable growth model.
HSBC noted that media reports suggesting UPL is exploring capital market options for Advanta could act as a meaningful catalyst. Any potential monetisation or listing of the seeds business could help unlock value for shareholders while also supporting debt reduction at the parent level, thereby strengthening UPL’s balance sheet.
The brokerage added that key growth drivers for Advanta remain firmly in place, supporting sustained value creation over the medium to long term. Given Advanta’s consistent outperformance and the optionality around capital market actions, HSBC believes the risk-reward for UPL remains attractive at current levels.
Disclaimer: The views and recommendations above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
