UPL (UPLL IN) Buy: Takeaways from two-day trip to Northern India

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UPL (UPLL IN) Buy: Takeaways from two-day trip to Northern India

el stocks are normal. HSBC view: we remain

cautious on demand on a pan-India basis given risk of low rainfall. 52-WEEK PRICE (INR)

Stakeholders’ point to a more efficient UPL. Industry trade partners appreciated 920.00

improvement in UPL’s trade policies over the past few years, including consistency in 720.00

product pricing/discount schemes, credit policies, and controlled product placement. The

520.00

trade partners prefer early payments to UPL over the past few years given this is 06/25 12/25 06/26

Target price: 880.00

financially more efficient with less hassle. UPL’s portfolio has evolved to a more High: 805.35 Low: 567.95 Current: 568.40

specialized products offering and the company has a strong market positioning and brand Source: LSEG IBES, HSBC estimates

recall in Saaf (Mancozeb + Carbendazim), herbicides like Saathi (Pyrazosulfuron), and

Sweep Power (Glufosinate). Products like Centurion (Clethodim), Ricebeaux (Propanil + Saurabh Jain*

Analyst, India Materials and Energy

thiobencarb), and Zevigo (Cartap + CTPR) are very promising with high potential. HSBC Securities and Capital Markets (India) Private

Limited

Other highlights. The wheat herbicide segment has flipped to c85% pre-emergent saurabh2jain@hsbc.co.in

herbicide today vs a post-emergent segment before pyroxasulfone launch. However, +91 22 6164 0691

there are reports of pyroxasulfone now facing weed resistance and thus bearing

heightened competition from promising MNC products. Some of the MNCs’ product * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

placement policies lead to price undercutting among the distributors but these are still at