UPL faces near-term growth headwinds over European concerns, Arysta buy

With all these concerns, the stock might see only a limited rise and the Street will watch the impact on performance in the next couple of quarters

After a 24 per cent run-up on the bourses from its October low, the stock of UPL fell about 3 per cent on Tuesday. Fresh concerns over growth in Europe (due to drought there) has the Street worried over the agrochemicals and industrial chemicals entity.

European sales have been sluggish for most of this year and after completion of the acquisition of Arysta, its dependence on Europe is expected to increase. The region contributed about 24 per cent to UPL’s sales in 2017-18.

Analysts see an impact on demand for fungicide in Europe, given lower rainfall and higher temperatures, leading to fewer