UPL Shares Fall 4% Despite Strong Q4 Performance; Analysts Predict Further Decline
UPL dips 4% on Q4 results; Motilal Oswal sees 10% downside on tax headwinds
Business Standard
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UPL, an agrochemical company, saw its shares drop by 4.5% to ₹639 following its Q4 results, despite reporting a 18% year-on-year profit increase. Analysts at Motilal Oswal predict a 10% downside due to tax pressures, maintaining a 'Neutral' rating with a target price of ₹600.
- 01UPL's shares fell by 4.5% to ₹639 after Q4 results.
- 02The company reported a net profit of ₹1,061 crore, up 18% year-on-year.
- 03Revenue from operations increased by 17.7% to ₹18,335 crore.
- 04Motilal Oswal lowered FY27 and FY28 earnings estimates by 15% and 13% respectively.
- 05Analysts maintain a 'Neutral' rating with a target price of ₹600.
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Shares of UPL (an agrochemical and crop protection company) declined by 4.5%, reaching an intraday low of ₹639 on the National Stock Exchange (NSE) after the company released its Q4 results for March 2026. Despite a robust performance, reporting a consolidated net profit of ₹1,061 crore (up 18% year-on-year) and a revenue of ₹18,335 crore (up 17.7%), the stock faced pressure due to tax headwinds. Analysts at Motilal Oswal Financial Services noted that while UPL showed strong growth across various geographies and business platforms, they expect a 10% downside due to an increased effective tax rate. They lowered their earnings estimates for FY27 and FY28 by 15% and 13% respectively, maintaining a 'Neutral' rating with a target price of ₹600. The company's market capitalization is currently at ₹54,326.5 crore, with a 52-week high of ₹812.20 and a low of ₹565.15.
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The decline in UPL's share price may affect investor confidence and impact the company's market capitalization, potentially influencing future investments and growth strategies.
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