Views on United Phosphorus Ltd 3QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on United Phosphorus Ltd 3QFY2016 Results:

"United Phosphorus Ltd posted sales of INR 3050cr, a YoY growth of 1.3% in 3QFY2016. The sales were impacted as all the key markets during the quarter were under pressure, while USA and Latin America posted a 12% and 14% YoY growth in 3QFY2016. Other key markets like India, Europe and ROW posted a dip of 17%, 9% and 8% respectively. Overall, the growth was driven by price and volume growth of 3% and 11% respectively, the exchange which was the main culprit was dipped by 13%.

India (INR 498cr) posted a 17% dip on back of serious drought conditions affecting agrochemical usage both in Kharif & Rabi crops. Europe ( INR 300cr) posted a 9% dip due to devaluation of Euro which impacted growth in INR terms. European markets likely to be reported flat to de-growth in Europe. Latin America (INR 1,279cr), posted a YoY 14% growth on back of high demand of fungicide.

On operating front; the OPM's came in at 19.0% V/s 17.9% in 3QFY2015 inspite of the lower sales, as the GPM improved from 54.2% V/s 48.8% in 3QFY2015 on back of healthy volume growth and price rise. This aided the Adj. net profit to come in at INR 306cr V/s INR 264cr, a 15.8% YoY growth. We maintain our BUY rating with a price target of INR 510."

Shares of UPL Limited was last trading in BSE at Rs.436.9 as compared to the previous close of Rs. 410.5. The total number of shares traded during the day was 223377 in over 7960 trades.

The stock hit an intraday high of Rs. 438.5 and intraday low of 410.75. The net turnover during the day was Rs. 94806792.

Source : Equity Bulls

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