Investec has upgraded UPL to ‘Buy’ from ‘Sell,’ raising the target price to Rs 700 from Rs 450. The brokerage attributes this positive shift to a recovery in global macroeconomic demand and UPL’s focus on operational efficiency. Investec believes that these factors will enable UPL to achieve its guidance for FY25, marking a turnaround from previous concerns over the company’s performance.
UPL’s commitment to reducing its overall debt levels is another key factor driving Investec’s optimism. The company’s focus on improving its balance sheet and enhancing cash flows is expected to strengthen its financial position, making it more resilient to external shocks. The brokerage notes that UPL’s strategic initiatives, including cost optimization and portfolio diversification, are starting to yield positive results.
With the global agricultural sector showing signs of recovery, UPL is well-positioned to capitalize on emerging opportunities. Investec believes that the company’s strong product portfolio and global presence will support its growth trajectory, making it an attractive investment in the current environment.
