UPL

Buy or sell: Vaishali Parekh recommends three stocks to buy today — UPL, Morepen Lab, Bajaj Healthcare

On May 12, the Indian stock market experienced significant declines as the Nifty 50 fell 1.83% and the Sensex dropped 2%. Investors reacted to fears of an oil shock and ongoing Iran negotiations, leading to bearish trends across all major sectors and rising crude prices.

UPL Limited reported an 18% YoY increase in consolidated net profit to ₹ 1,061 crore for Q4 FY 2025-26, up from ₹ 896 crore last year. The QoQ profit rose 168% from ₹ 396 crore in the previous quarter.

UPL restructuring will establish a new listed company - UPL Global - combining India and international crop protection businesses. UPL Global is expected to become one of the largest listed crop protection pure-play companies worldwide by revenue.

Nuvama’s Ebitda estimates for UPL don’t appear to be on the higher side compared to Antique Stock Broking and Motilal Oswal Financial Services. Even the valuation multiples assigned are in sync with those of global peers for each business.

UPL announced restructuring to form a unified crop protection entity. The reorganisation is structurally straightforward but strategically significant. But brokerages flagged that the debt overhang remains largely unresolved.

UPL Limited's shares fell 13% following the announcement of a group restructuring aimed at integrating its Indian and international crop protection businesses, leading to negative reactions from brokerages and investors.

A merger and demerger process will combine UPL Ltd’s Indian and international pesticide arms to achieve operational agility and improved debt management.