Strong growth outlook, valuations point to further upside for UPL

Buyback could support the price in the near term

The stock of the country’s largest agricultural inputs company, UPL is up about 4 per cent in trade on Thursday taking its cumulative gain over the last four trading sessions to about 13 per cent. While a buyback proposal and reports of UPL attracting takeover interest from global rivals are the immediate triggers, a strong growth outlook on the back of improved prices and higher volumes going ahead is expected to support earnings and valuations going ahead.
 

The company approved a buyback proposal yesterday earmarking up to Rs 1,100 crore for the same through the open market route. The price