Shares of UPL are in focus after brokerages offered divergent views on the stock following its third-quarter performance, even as both raised their respective target prices.
Kotak Institutional Equities maintained a Sell rating on UPL while raising its target price to ₹630. The brokerage said the company’s Q3 performance was ahead of estimates at the operating level, but below-the-line items disappointed. Kotak noted that UPL has retained its FY2026 EBITDA growth guidance of 12–16%, leading the brokerage to make only modest revisions to its FY2026–28 estimates.
In contrast, Investec reiterated a Buy rating on the stock and raised its target price to ₹975. The brokerage said Q3 EBITDA stood at ₹24.3 billion, up 13% year-on-year, and came in 12% ahead of estimates, driven by stronger revenues and margins. Investec highlighted strong double-digit growth in Europe and the rest of the world, while other geographies delivered mid-single digit growth.
Growth in the Americas was muted at 3% YoY, which Investec attributed to the deferral of around $30 million of shipments in anticipation of a trade deal. To offset potential tariff impact, the company has implemented price increases and is reworking its supply chain by shifting from importing formulated products to importing technicals, which are tariff-exempt.
Investec said management sounded confident of delivering growth in the fourth quarter despite a stiff base and expects net debt-to-EBITDA levels to decline to 1.6–1.8x in FY26E, compared with 2.1x in FY25.
At the current market price of ₹699.65, Kotak Institutional Equities’ target price of ₹630 implies a downside of around 10%, while Investec’s target price of ₹975 implies an upside of around 39%.
Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of the respective brokerages and do not constitute investment advice or recommendations by the publication.
