The brokerage revised its rating on the stock from "sell" to "buy," while increasing its price target from Rs 450 to Rs 700.
The positive outlook is fueled by expectations of successful debt reduction by UPL in the fiscal year 2025. As of September 2024, UPL's net debt stood at Rs 27,531 crore.
Further, the brokerage believes UPL will meet its current guidance, citing anticipated recovery in global macro demand and the company's focus on operational efficiency as key supporting factors.
UPL is principally engaged in the agrobusiness of production and sale of agrochemicals, field crops, and vegetable seeds, and the non-agrobusiness of production and sale of industrial chemicals, chemical intermediates, and specialty chemicals.
UPL reported consolidated net profit of Rs 828 crore in Q3 FY25, compared with net loss of Rs 1,217 crore in Q3 FY24. Revenue from operations rose 10% YoY to Rs 10,907 crore in the quarter ended 31 December 2024, driven by a 9% increase in volumes, a 5% increase in price, and a 4% decline due to FX, mainly in Brazil.