Global brokerage house CLSA expects a strong FY22 for UPL led by favourable macroeconomic conditions. It has maintained a Buy call on the stock with a target price of Rs 740.

Share Market Live

NSE

Several global agrochemical players provided bullish commentary on volume growth and pricing in their March-quarter results.

“The macro-environment remains strong with the food price index at its highest level since 2014. Peers are guiding for strong volume/pricing in CY21 as demand is robust with potential for further price hikes in 2HCY21 to offset currency volatility and a rise in input costs,” CLSA said.

Favourable macro conditions and peer commentary point to a strong FY22 for UPL, it added.

CLSA estimates FY22e revenue growth at 8 percent and FY22e EBITDA growth at 11 percent.

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

To watch other videos in this series, click on the Standout Brokerage Report tab below.

(Edited by : Ankit Gohel)

First Published:May 10, 2021 11:57 AM IST