UPL (UPL)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at UPL as an agrochemical turnaround candidate, not a compounder. At ₹563, market cap ₹47,590 Cr, it trades at P/E 23.09 and P/B 1.37 against book value ₹411.01. The latest quarter showed ₹12,269 Cr sales and ₹490 Cr net profit, while reported profit growth is 4,185.37%—dramatic, but likely from a low base, so I won't pay for it as durable. Sales growth is 10.50%, but five-year revenue CAGR is only 5.46%, suggesting limited structural growth. Free cash flow of ₹8,328 Cr is a real positive, and Piotroski F-score 7/9 says accounting momentum is improving. However, ROE 6.01% and ROCE 7.66% are below what I demand; debt/equity 0.57 is manageable but not trivial. Altman Z-score 1.61 signals financial stress. Valuation is the main problem: Graham Number ₹400.69 gives negative margin of safety of -59.08%, DCF intrinsic value ₹72.93, EV/EBITDA 136.71, and PEG 2.47. I see no moat in these numbers; pricing power and returns are weak. Dividend yield 1.07% and promoter holding 33.50% don't offset the risk. FairStock score 50/100 mixed confirms this is not a clear bargain. That is not my idea of a margin of safety. The market is pricing a recovery that must show up in ROE, ROCE, and cash generation. Until then, this looks speculative. I'd wait for price below Graham Number or clear improvement in returns.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer