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UPL Ltd

NSE: UPL BSE: 512070

724.30

(-2.77%)

Sat, 14 Feb 2026, 01:17 pm

UPL Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.9x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (4x coverage).
  • Dividends per share have been stable in the past 10 years.
  • UPL's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • UPL's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • UPL's earnings are expected to grow significantly at over 20% yearly.
  • UPL's earnings growth is expected to exceed the India market average.
  • UPL's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • UPL's earnings are expected to exceed the low risk growth rate next year.
  • UPL's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • UPL's net income is expected to increase by more than 50% in 2 years time.
  • Performance (ROE) is expected to be above the current IN Chemicals industry average.
  • An improvement in UPL's performance (ROE) is expected over the next 3 years.
  • UPL's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for UPL is expected to decrease over the next 2 years.
  • UPL is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • UPL's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • UPL's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • UPL is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • UPL is profitable, therefore cash runway is not a concern.
  • UPL is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (30.5%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1x debt.
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
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Cons

  • UPL's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (55.6% vs 126.9% today).
  • UPL's level of debt (126.9%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the UPL board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • The average tenure for the UPL management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

    misc

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    Pros

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      Cons

      • UPL has significant price volatility in the past 3 months.

      past

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      Pros

      • UPL's 1-year earnings growth exceeds its 5-year average (23% vs 5.9%)
      • UPL's year on year earnings growth rate has been positive over the past 5 years.
      • UPL's earnings growth has exceeded the IN Chemicals industry average in the past year (23% vs 9.1%).
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      Cons

      • UPL used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
      • UPL's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • UPL has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • UPL is good value based on expected growth next year.
      • BSE:512070 is up 9.4% outperforming the Chemicals industry which returned 6.9% over the past month.
      • BSE:512070 is up 9.4% outperforming the market in India which returned 8% over the past month.
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      Cons

      • UPL's share price is below the future cash flow value, but not at a moderate discount (< 20%).
      • UPL's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • UPL is overvalued based on assets compared to the IN Chemicals industry average.
      • UPL is overvalued based on earnings compared to the IN Chemicals industry average.
      • UPL is overvalued based on earnings compared to the India market.
      • 512070 underperformed the Chemicals industry which returned 2.2% over the past year.
      • 512070 underperformed the Market in India which returned -14.5% over the past year.

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