Differentiated product focus, deleveraging to drive growth for UPL

Progress on launches, margin gains and debt reduction key for rerating

In a weak market, the stock of the country’s largest agrochemical company, UPL, was up 2.4 per cent. Focus on differentiated and sustainable (D&S) solutions, improvement in operating profit margins trajectory and deleveraging are the key reasons brokerages have recently reiterated their buy ratings on the stock.

One of the key growth drivers for the company is the change in product or business mix with a higher share of revenues coming from D&S comprising value added products and bio-solutions. The company intends to increase the share of D&S from 29 per cent in FY21 to 50 per cent by FY26.