Stock Performance and Market Context
On the trading day, UPL Ltd. outperformed its sector peers by 1.96%, closing at the new peak after touching an intraday high of Rs.792.45, marking a 2.92% gain from the previous close. This rise follows a three-day period of consecutive declines, signalling a notable trend reversal. The stock is currently trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring sustained upward momentum.
In comparison, the broader market index, Sensex, opened slightly lower at 84,600.99, down 0.11%, and was trading near 84,668.39 at the time of reporting, remaining 1.76% below its own 52-week high of 86,159.02. While Sensex is trading below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed signals for the broader market. Against this backdrop, UPL Ltd.’s performance stands out with a one-year return of 56.08%, significantly outperforming the Sensex’s 8.16% gain over the same period.
Financial Strength Driving the Rally
The stock’s rally to a new 52-week high is supported by a series of strong financial results. The company reported a remarkable 53.86% growth in operating profit, with Profit Before Tax (PBT) excluding other income for the quarter reaching Rs.392 crore, an increase of 171.27%. Net Profit After Tax (PAT) for the quarter surged by 201.6% to Rs.442.15 crore. Additionally, operating cash flow for the year hit a record Rs.10,151 crore, reflecting robust cash generation capabilities.
UPL Ltd. maintains an attractive valuation profile with a Return on Capital Employed (ROCE) of 9.9% and an enterprise value to capital employed ratio of 1.6, indicating efficient use of capital relative to its valuation. The company’s PEG ratio stands at a low 0.1, highlighting the stock’s valuation relative to its earnings growth, which has risen by 230.3% over the past year.
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Market Position and Institutional Confidence
With a market capitalisation of Rs.64,826 crore, UPL Ltd. is the largest company in its sector, representing 30.19% of the entire Pesticides & Agrochemicals industry. Its annual sales of Rs.47,715 crore account for 46.18% of the sector’s total revenue, underscoring its dominant market position.
Institutional investors hold a significant 57.05% stake in the company, reflecting strong confidence from entities with extensive analytical resources. This holding has increased by 1.13% over the previous quarter, signalling continued institutional support.
Valuation and Profitability Metrics
Despite the strong recent performance, the company’s Return on Equity (ROE) averages 9.43%, indicating moderate profitability relative to shareholders’ funds. The company’s debt servicing capacity is constrained by a relatively high Debt to EBITDA ratio of 3.70 times, which is a factor to monitor in the context of its financial leverage.
Over the past five years, operating profit growth has been modest, with an annualised rate of 1.06%, suggesting that recent gains have been driven by more recent operational improvements and market conditions rather than long-term growth trends.
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Summary of Key Metrics
UPL Ltd.’s stock price has surged from its 52-week low of Rs.493 to the new high of Rs.792.45, representing a substantial appreciation in value. The company’s Mojo Score stands at 77.0, with a recent upgrade from Hold to Buy on 11 Nov 2025, reflecting improved market sentiment and fundamental strength. The market cap grade is 2, indicating a sizeable market presence within its sector.
The stock’s day change of 2.47% on the day of the new high further emphasises the positive momentum. The company’s performance has consistently outpaced the broader market and sector indices, with returns of 56.08% over the past year compared to the BSE500’s 5.53%.
Conclusion
UPL Ltd.’s achievement of a new 52-week high at Rs.792.45 is a clear reflection of its strong financial results, dominant market position, and sustained investor confidence. The stock’s ability to trade above all major moving averages and outperform both its sector and the broader market highlights the strength of its recent rally. While certain financial metrics such as debt levels and long-term profit growth warrant attention, the company’s current valuation and operational cash flow generation remain robust pillars supporting its market performance.
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