UPL: Q3 correction may be a good entry point as prospects remain firm

UPL's management had already cut growth guidance to 8-10 per cent

UPL’s performance for the December quarter (Q3) was lower than expectations due to softer-than-anticipated sales in Latin America. As a result, its stock corrected about 12 per cent in the past fortnight. However, considering future growth prospects of UPL, which has a diversified geographical presence, established portfolio with branded products aiding margins, and pending launches, analysts said the correction offered a good entry point.

In Q3, UPL’s sales were up 7 per cent at Rs 41.94 billion mainly due to a tepid 5 per cent increase in Latin American sales. Analysts said this geography, which contributes over 40 per cent