HSBC has maintained a Buy rating on UPL shares while cutting the target price to ₹770 from earlier estimates. The revised target still implies upside from the current market price of ₹641.70. The brokerage remains optimistic about the company’s long-term trajectory, citing strong operational recovery and meaningful balance sheet improvement in Q4FY25.
According to HSBC, UPL delivered a strong fourth quarter, driven by margin recovery, with balance sheet gains exceeding expectations. The company has entered a phase of financial deleveraging, which HSBC believes will set the stage for a “virtuous cycle” of value creation.
The brokerage expects this deleveraging to be supported by steady free cash flow generation and potential cash-raising initiatives. However, HSBC has cut its FY26–FY27 EPS estimates by 11–15%, citing moderated expectations on growth and operating margins.
Despite the earnings revision, HSBC sees UPL as structurally positioned to benefit from improved cost control and better capital allocation in the medium term.
Disclaimer: This article is based on brokerage commentary and publicly available data. It does not constitute investment advice. Business Upturn and the author do not recommend buying or selling any stock mentioned.