UPL Stock: Jefferies Reiterates ‘Buy’ with Rs 715 Target
By Business Desk
Jefferies maintains a ‘Buy’ rating on UPL, setting a Rs 715 price target and projecting 14% EBITDA growth for FY27, citing improved earnings and Advanta IPO potential.
Jefferies has reiterated its ‘Buy’ rating on agrochemical major UPL, setting a price target of Rs 715 and projecting 14% year-on-year EBITDA growth for FY27. This positive outlook comes despite a significant share price correction over the past year.
- Jefferies Rating: Buy
- Price Target: Rs 715
- Projected FY27 EBITDA Growth: 14% year-on-year
- UPL Share Price Correction (2026): 28%
- Monday’s Closing Price (BSE): Rs 571.00 (+0.25%)
The global brokerage firm attributes its optimism to UPL’s improving earnings prospects, expected margin expansion, and the potential value unlocking from the proposed initial public offering (IPO) of its seeds business, Advanta. Jefferies considers UPL’s current valuation undemanding and attractive after the market adjustment.
Catalysts for Growth
- Strong demand for crop protection products in India, Africa, and the US.
- Continued double-digit growth performance from Advanta.
- Anticipated forex exchange translation tailwind in the second quarter.
Following discussions with senior management, Jefferies noted UPL’s confidence in achieving its full-year growth guidance of 10-14%. The company’s second-quarter performance is reportedly aligning with these projections.
Advanta IPO: Unlocking Shareholder Value
The proposed Advanta IPO, which received SEBI approval in June 2026, is viewed as a crucial move to provide a clearer valuation benchmark for the segment. Advanta exhibits higher growth and profitability compared to the broader UPL business, making its separate listing a key driver for enhanced shareholder value.
With expectations already moderated following the sharp stock correction, Jefferies believes UPL’s risk-reward scenario has become favorable. This reassessment provides a compelling entry point for investors.
Key Factors to Monitor
- Impact of the El Niño situation in Latin America.
- Progress in margin recovery across business segments.
- Development and execution of the Advanta IPO.
Investors are advised to track these critical factors as UPL navigates its growth trajectory, supported by Jefferies’ continued confidence in its long-term potential.