Muted near-term outlook, weak Q4 show to keep UPL stock under pressure

Lower debt levels, inexpensive valuations are positives

The stock of India’s largest agrochemical player — UPL (formerly United Phosphorus) — fell 2.8 per cent in trade. It was among the top losers in the BSE 100 on Tuesday. Weak 2022-23 (FY23) January-March quarter (fourth quarter, or Q4) performance and muted near-term outlook led to the decline.

The company reported lacklustre growth in revenue of 4 per cent on the back of a price reduction of 3 per cent and volume growth of 1 per cent. This was offset by a 6 per cent foreign exchange benefit.

The muted top-line performance was due to a dip in North