UPL slips to a 52-week low after agri tech firm reports weak Q3 numbers; what Jefferies says about it
The sustainable agriculture technology company suffered a loss of Rs 1217 crore in the quarter under review against a profit of Rs 1087 crore in the same quarter last year.
UPL Share Price: The stock of UPL dipped to a 52-week low of Rs 482.00 in morning trade on BSE on Monday (February 5, 2024) after the sustainable agriculture technology firm reported weak December quarter results.
The shares of UPL were sliding by 9.23 per cent, or Rs 49.25, at Rs 484.25 each at 12:16 pm on Monday.
The shares are in dire straits after the company slipped from profit to deficit in the December quarter.
The company suffered a loss of Rs 1217 crore in the quarter under review against a profit of Rs 1087 crore in the same quarter last year.
Not just PAT, its revenue from operations were also down by 27.7 per cent.
The adjusted margin for the company in the December quarter was 4.2 per cent against 22.2 per cent Year-on-Year (YoY).
What Jefferies says about UPL
After the lacklustre Q3 results of the company, Jefferies has maintained a buy call on the firm, cutting the target to Rs 635 from Rs 675.
In its report, Jefferies said that the company missed missed Q3 numbers estimated by the brokerage, and posted a loss, led by prolonged destocking in key markets and pricing pressure (-24% Year-on-Year).
The company now expects normalised business from Q2FY25 vs H2FY24.
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