UPL Ltd. Gains 5.25%: 5 Key Factors Driving This Week’s Market Resilience

2 February: Strong Intraday Rally Signals Rebound

UPL Ltd began the week with a notable intraday surge, climbing 5.2% to close at ₹699.40 despite a broader market decline. The stock reached an intraday high of ₹706.90, outperforming the Pesticides & Agrochemicals sector’s 2.73% gain and the Sensex’s 1.03% fall. This rebound followed two prior days of decline, marking a short-term reversal in sentiment.

The day’s rally was underpinned by the company’s Q3 FY26 results, which revealed a complex financial picture: a 51.7% contraction in quarterly profit after tax (PAT) to ₹436.89 crore contrasted with a 144.23% surge in profit before tax excluding other income to ₹635 crore. Despite margin pressures, operational performance showed strength, supporting the positive price action.

3 February: All-Time Intraday High Amid Mixed Market

Building on the previous day’s momentum, UPL Ltd surged 5.84% to an intraday high of ₹753.75, marking a 7.77% increase from the prior close. The stock opened with a 3.8% gap up and sustained gains despite the Sensex closing down 2.68%. This resilience highlighted UPL’s relative strength within its sector, which gained 3.84% on the day.

Technically, the stock traded above its 5-day, 100-day, and 200-day moving averages, signalling a positive medium- to long-term trend. However, it remained below the 20-day and 50-day averages, indicating some near-term resistance. The two-day cumulative return of 10.31% reinforced bullish sentiment despite the broader market’s volatility.

4 February: Valuation Attractiveness Improves Amid Mixed Returns

UPL Ltd’s valuation metrics shifted from very attractive to attractive, reflecting a recalibration amid mixed market returns. The stock’s price-to-earnings (P/E) ratio stood at 32.64, slightly higher than peer P I Industries’ 31.79, but with a more reasonable enterprise value to EBITDA (EV/EBITDA) ratio of 9.84 versus 21.9 for the peer.

Price-to-book value of 1.96 and a PEG ratio of 0.06 further supported the stock’s appeal. Despite recent underperformance over one month (-8.08%) and year-to-date (-6.98%) relative to the Sensex, UPL’s one-year return of 17.33% notably outpaced the benchmark’s 8.49%. Return on capital employed (ROCE) and return on equity (ROE) remained moderate at 9.88% and 7.46%, respectively.

5 February: MarketsMOJO Upgrades UPL to Buy on Financial and Technical Strength

Reflecting improved fundamentals and technical indicators, MarketsMOJO upgraded UPL Ltd’s rating from Hold to Buy on 4 February 2026. The upgrade was driven by strong operational metrics, including a half-year PAT growth of 87.43% to ₹879.05 crore and a robust PBT less other income of ₹635 crore for the quarter.

Technical momentum strengthened with daily moving averages turning bullish and positive signals from Bollinger Bands on weekly and monthly charts. Despite a modest ROE of 7.46% and a high debt-to-EBITDA ratio of 3.70 times, the company’s market capitalisation of approximately ₹63,748 crores and institutional holding of 57.72% underscored its market stature.

6 February: Technical Momentum Shows Mixed Signals Amid Consolidation

UPL Ltd’s technical momentum experienced a nuanced shift, with the weekly trend moving from bullish to mildly bullish. The stock closed at ₹741.05, down 0.91% from the previous day, within an intraday range of ₹735.55 to ₹761.15. Despite short-term moderation, monthly technical indicators such as MACD and Bollinger Bands remained bullish, supporting a positive medium-term outlook.

Weekly MACD and Know Sure Thing (KST) oscillators showed mild bearishness, while the On-Balance Volume (OBV) indicator remained bullish, signalling ongoing accumulation. The Relative Strength Index (RSI) on weekly charts was bullish, though monthly RSI was neutral, indicating potential for further price appreciation without immediate overbought risk.

Daily Price Comparison: UPL Ltd vs Sensex (2–6 February 2026)

Key Takeaways

UPL Ltd’s 5.25% weekly gain significantly outpaced the Sensex’s 1.51% rise, driven by strong intraday rallies early in the week and a technical upgrade by MarketsMOJO. The company’s mixed quarterly results revealed operational strength despite margin pressures, reflected in a sharp rise in profit before tax excluding other income but a steep PAT decline.

Valuation metrics improved, with attractive P/E and EV/EBITDA ratios relative to peers, supporting the recent upgrade to a Buy rating. Technical indicators showed a bullish medium- to long-term trend, although short-term momentum moderated towards week’s end, signalling potential consolidation.

Institutional confidence remains high, with a 57.72% stake and improving volume trends. However, leverage concerns and modest return on equity highlight areas for cautious monitoring. Overall, UPL’s performance this week underscores its resilience amid sectoral challenges and market volatility.

Conclusion

UPL Ltd’s week was marked by a strong price recovery and positive technical developments, supported by a nuanced financial performance and improved valuation appeal. The MarketsMOJO upgrade to Buy reflects growing confidence in the company’s operational and market prospects, despite short-term earnings volatility and sector headwinds.

While technical momentum shows some short-term caution, the medium- and long-term outlook remains constructive. Investors should continue to monitor evolving financial trends, leverage metrics, and sector dynamics to gauge the sustainability of UPL’s recent gains and its potential trajectory in the agrochemical space.

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