Buy UPL; target of Rs 1086: Sharekhan
Sharekhan’s research report on UPL
Management has guided for revenue growth of 8-10% and EBITDA growth of 16-20% for FY2020E, on base revenue and EBITDA of Rs. 32,500 crore and Rs. 6,900 crore, respectively. Revenue and cost synergies of $ 350 million and $ 200 million, respectively, on account of Arysta’s acquisition likely to accrue in a phased manner over a period of three years beginning FY2020. UPL (ex Arysta) reported revenue and earnings growth of 15% and 18% y-o-y, respectively, during Q4FY2019.
We maintain our Buy rating on the stock with a revised PT of Rs. 1,086.
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