UPL Stock Plummets 6% Following Q4 Results: Expert Analysis on Future Investment Strategy

  • Shares of UPL, a leading provider of agricultural solutions and services, witnessed a 6% slump in today’s intraday trade, reaching ₹501.65 apiece.
  • The company recorded a revenue of ₹140.8 billion in the fourth quarter of FY24, marking a 15% year-on-year decline.
  • The EBITDA stood at ₹19.3 billion, significantly higher than the estimated ₹13.2 billion, representing a 36% year-on-year decrease.

UPL shares slump 6% despite higher-than-expected Q4 revenue. The company’s EBITDA also surpassed estimates, but marked a 36% YoY decrease.

UPL Shares Experience Downturn

Following a strong surge in the last two trading sessions, shares of UPL slumped 6% in today’s intraday trade. This downturn came despite the anticipation of favorable financial results from the company. The company’s shares reached ₹501.65 apiece.

Q4 Revenue and EBITDA

In the fourth quarter of FY24, UPL recorded a revenue of ₹140.8 billion, marking a 15% year-on-year decline. This figure was notably higher than the estimated ₹114.7 billion by domestic brokerage firm Motilal Oswal. The EBITDA stood at ₹19.3 billion, significantly higher than the estimated ₹13.2 billion, representing a 36% year-on-year decrease. The EBITDA margin also experienced a decline, dropping by 450 basis points year-on-year to 13.7%; however, this surpassed the estimated 11.5%.

Future Outlook

On the guidance front, the company expects normalization of the crop protection business in 2HFY25 and strong performance of the seeds business in FY25. The management has guided for 4–8% revenue growth in FY25, with absolute EBITDA growth of over 50% and CFO generation of USD 300–400 million. The company targets to utilise the entire FY25 CFO for debt reduction.

Conclusion

Despite the slump in UPL’s shares, the company’s Q4 revenue and EBITDA surpassed estimates. The company expects normalization of the crop protection business in 2HFY25 and strong performance of the seeds business in FY25. With a guided revenue growth of 4–8% in FY25, UPL aims to utilise the entire FY25 CFO for debt reduction.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

BlockDAG’s Keynote Spurs $34.7M Presales, Captivates Solana (SOL) and Litecoin (LTC) Investors

<ul> <li>BlockDAG’s keynote video has driven $34.7M in...

HTX Exchange (HT) Overtakes Coinbase in Spot Trading Volume, Setting New Benchmarks

HTX Exchange, formerly known as Huobi, recently...

Bitcoin (BTC) Hashrate Surges to Record High Amid Post-Halving Resilience

The Bitcoin mining hashrate has sharply rebounded...

Solana (SOL) Testnet Upgrade: Paving the Way for Major Blockchain Innovations

<ul> <li>Solana requests validators to upgrade the protocol...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Dogecoin (DOGE) Technical Analysis for May 28, 2024: Key Insights and Future Predictions

Dogecoin's recent price movements have captured the...

Massive GCR Hack: Meme Coin Plunge by 80% – GCR Price Analysis and Impact

The cryptocurrency market has been abuzz with...

Why Is Bitcoin (BTC) Dropping? Latest Analysis and Market Insights

<ul> <li>Bitcoin's recent decline is being...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Choice Broking Recommends Buying These 7 High-Potential Stocks for Short-Term Gains: Expert Insights

<ul> <li>The Indian stock market has been fluctuating within a narrow range recently, reflecting investor anxiety ahead of the upcoming Lok...

AI Tokens (AIT) Surge and Plummet: Market Analysis and Future Predictions

As the second quarter of the year enters its last month, market participants are closely monitoring the performance of AI-themed tokens. ...

Krystal Integrated ($KRY) Surges 5% on Robust Q4 Performance and Strong Order Book

<ul> <li>Krystal Integrated Services share price jumped over 5% on Tuesday's session after the firm reported its Q4 results.</li> ...