UPL Share Price

A fundamental analysis UPL Ltd.

It is crucial to analyse the UPL share price and company history fundamentally to understand whether it is a good investment. In this article, we will examine UPL Ltd. by understanding its history, shareholding, and UPL share price forecast to analyse its strength as an investment option.

UPL Ltd.

United Phosphorus Limited (UPL) is a leader in the sustainable agriculture unit that provides over 14,000 products and solutions and has a presence in 140 countries. They are among the most significant players in the agricultural industry, accounting for 90% of the world’s food and having a US$6 billion annual revenue.

They are a leading manufacturer and provider of natural solutions and have over 43 manufacturing facilities and 18 R&D facilities.

UPL aims to empower its customers by providing them access to sustainable, safe, and healthy food. They have held onto their family-owned sensibilities and values for over 50 years. They currently deal with industrial farms, cooperatives, and smallholder farmers.

Their services cover the entire agricultural value chain, from high-performance seeds to natural solutions, post-harvest solutions, crop protection products, and on-farm equipment and services.

Is the sustainable agricultural industry a good investment?

Infrastructure inefficiencies, climate change, and nutrition-related diseases contribute to the increasing demand for sustainable agriculture. Since factors like climate change and food-related diseases are present not just in India but also globally, the demand for sustainable agriculture is bound to rise globally.

This sector is part of impact investing, where more funds are being generated to promote the well-being of nature and individuals. By investing in this sector, individuals not only get good returns but also make environmentally responsible investments and contribute to the future.

As more consumers become aware of the need to protect the environment and focus on their well-being, the demand for sustainable agriculture will rise, making it a promising industry to invest in today.

Who are UPL’s competitors in the sustainable agriculture industry?

Here are UPL’s key competitors in the sustainable agriculture industry:

• ADM
• Cargill
• Pidilite Industries Ltd.
• Syngenta
• Pioneer
• Chambal Fertilisers and Chemicals Ltd.

History of UPL Limited

Here are the key events in the journey of UPL throughout the years that have impacted the UPL share price history:

• 1969: Started Red phosphorus
• 1972: President’s gold seal for search and development
• 1976: Entry into Agchem and beginning of exports
• 1980: Beginning of the production of yellow phosphorus, Ankleshwar
• 1984: Listed on India’s Stock exchange
• 1994: Acquired MTM Agrochemical, the first international acquisition
• 2000: Product acquisition of Devrinol Japan
• 2004: Established Ag Value Inc., USA, as a UPL subsidiary and product acquisitions of Surflan, Ultra Blazer, and Lenacil
• 2007: National award for outstanding research and development on pollution control and environmental protection
• 2008: Rolta Corporate Award
• 2010: ICC lifetime achievement award for entrepreneur of the year
• 2014: Increase in stake of UPL Brazil to 73% and crossed INR 100 BN benchmark revenue
• 2016: Won friendly green factory for 2016 at Vietnam’s Brands for Environments
• 2020: Ranked number 1 globally in the agrochemical sector by Sustainalytics
• 2021: Ranked number 1 for sustainability performance amongst its peers for the second year running

Company Profile of UPL Ltd.

Pros

• Expanding Operations: UPL is a growing company that is acquiring other companies and products as it grows, which makes investments in UPL more promising.
• Confidence of Promoters: The promoters have a 32.35% stake in the company, which shows their confidence in the company’s future growth prospects.

Cons

• Lack of Awareness: While there is an increasing awareness of the need for sustainable agriculture, there is still a lack, and not everyone is opting for sustainable solutions. This means the company's further growth directly relates to increasing awareness about a sustainable environment.
• Commodity price fluctuations: The agriculture sector is greatly influenced by changing commodity prices. These changing prices and customers' buying capacities impact UPL products and services.

The finances

Here’s a summary of UPL Limited’s financial information as of May 2024:

Shareholding pattern of UPL Ltd.

Here’s a concise summary of UPL Limited’s shareholding pattern as of March 2024 :

• Promoters: 32.35%
• Foreign Institutional Investors (FII): 33.64%
• Domestic Institutional Investors (DII): 18.65%
• Public: 15.37%

Peer Multiple Comparison

Let’s compare UPL Limited with its peers, with complete data available. Here’s a concise table: