Shares of UPL Ltd are in focus today as top brokerages have released fresh views on the stock following management commentary and the company’s strategic roadmap for the next 1–3 years. The global agrochemical major is working on restructuring its verticals, strengthening its financial profile, and regaining profitability — developments that have triggered renewed analyst attention.
What HSBC says about UPL
HSBC has maintained a Buy rating on UPL with a target price of ₹850 per share, signalling strong upside potential from current levels.
According to the brokerage, UPL is entering a multi-year transformation phase across its four key verticals:
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Advanta (seeds) is the most prepared for growth,
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followed by Superform,
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while the remaining verticals are expected to stabilise progressively.
HSBC highlighted that UPL is actively evaluating platform-level structural options to unlock shareholder value — signalling strategic moves that could include reorganisation or divestments, though the company has not provided specifics.
Margin outlook and financial strategy
The brokerage expects sustained margin expansion every year, expecting UPL to gradually reclaim its peak EBITDA margins. Growth is seen coming largely from:
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UPL Corp
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Superform
On the balance sheet front, management remains highly focused on deleveraging, with a targeted Net Debt/EBITDA ratio of 1.6x–1.8x by end-FY26, supported by strong free cash flow generation.
The company has also reiterated that no large inorganic acquisitions are planned in the near term — a move that supports debt reduction.
So, should investors buy UPL?
Based on the latest institutional view, UPL remains a “Buy” for HSBC, driven by restructuring benefits, margin recovery potential, and an improving balance sheet.
However, investors should monitor execution risks and global agrochemical industry headwinds before making decisions.
Disclaimer
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Brokerage recommendations mentioned belong solely to the respective firms and not the author or Business Upturn.
