Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for UPL Ltd. indicates a positive outlook on the stock, suggesting it is expected to outperform the broader market over the medium term. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised to 'Buy' from 'Hold' on 11 Nov 2025, reflecting an improvement in the company’s overall profile. Investors should note that while the rating change date is in November, all data and returns discussed here are current as of 28 December 2025.
Here’s How UPL Ltd. Looks Today
As of 28 December 2025, UPL Ltd. demonstrates robust financial health and market performance. The company’s Mojo Score stands at 77.0, a significant rise from 57.0 prior to the rating update, underpinning the 'Buy' grade. This score reflects a balanced assessment of the company’s fundamentals and market dynamics.
Quality Assessment
UPL Ltd. holds an average quality grade, which indicates a stable operational and business model. The company’s operating profit growth of 53.86% in the latest reported period highlights its ability to generate earnings efficiently. Additionally, the profit after tax (PAT) for the latest six months reached ₹363.15 crores, marking a remarkable growth of 147.16%. Profit before tax excluding other income (PBT less OI) also surged by 171.27% to ₹392.00 crores. These figures demonstrate strong earnings momentum and operational resilience.
Valuation Perspective
UPL Ltd. is currently valued attractively relative to its peers and historical averages. The company’s return on capital employed (ROCE) is 9.9%, which, combined with an enterprise value to capital employed ratio of 1.6, suggests efficient capital utilisation at a reasonable price. The stock trades at a discount compared to sector averages, offering investors a favourable entry point. Moreover, the price-to-earnings-growth (PEG) ratio stands at a low 0.1, signalling undervaluation relative to its earnings growth potential.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend
The financial trend for UPL Ltd. is very positive. Operating cash flow for the year has reached a peak of ₹10,151 crores, underscoring strong cash generation capabilities. The company’s profit growth over the past year has been exceptional, with profits rising by 230.3%. This robust financial trajectory supports the 'Buy' rating by signalling sustainable growth and improving profitability.
Technical Outlook
Technically, UPL Ltd. is in a bullish phase. The stock has delivered a 55.21% return over the past year and a 54.12% gain year-to-date, reflecting strong investor confidence and positive price momentum. Shorter-term returns also reinforce this trend, with gains of 19.43% over three months and 21.54% over six months. The technical grade assigned is bullish, indicating that the stock’s price action supports the fundamental optimism.
Institutional Interest
Institutional investors hold a significant stake in UPL Ltd., currently at 57.05%. This high level of institutional ownership is often a positive indicator, as these investors typically conduct thorough due diligence before committing capital. Notably, institutional holdings have increased by 1.13% over the previous quarter, suggesting growing confidence in the company’s prospects among sophisticated market participants.
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What This Rating Means for Investors
For investors, the 'Buy' rating on UPL Ltd. signals an opportunity to consider adding the stock to their portfolios. The combination of attractive valuation, strong financial trends, and positive technical momentum suggests that the stock is well-positioned for further gains. While the quality grade is average, the company’s operational improvements and profit growth mitigate concerns, making it a compelling choice within the pesticides and agrochemicals sector.
Investors should also be mindful of market conditions and sector-specific risks, but the current data as of 28 December 2025 supports a constructive outlook. The rating reflects a balanced view that incorporates both quantitative metrics and market sentiment, providing a comprehensive basis for investment decisions.
Summary
In summary, UPL Ltd.’s 'Buy' rating by MarketsMOJO, last updated on 11 Nov 2025, is underpinned by a strong financial trend, attractive valuation, bullish technicals, and stable quality metrics. The stock’s recent performance and institutional backing further reinforce this positive stance. Investors seeking exposure to the pesticides and agrochemicals sector may find UPL Ltd. a promising candidate for portfolio inclusion based on the latest comprehensive analysis.
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