UPL Stock Predicted to Reach Rs 860 by Investment Firm Anand Rathi

UPL Restructuring Plan Unveiled

UPL, a leading crop protection company, has announced a strategic three-phase restructuring plan to establish a pure-play listed crop protection company. The initiative aims to consolidate the company's global and domestic franchises, resulting in a streamlined corporate structure, improved business visibility, and accelerated deleveraging.

Key Highlights

• The restructuring plan involves the demerger of UPL's crop protection business into a new entity, UPL Global, and the merger of its India and international crop protection subsidiaries into a new platform.
• UPL shareholders will receive one UPL Global share for every UPL share held, with a minor subsidiary merger adjustment.
• The restructuring will result in two distinct listed entities.

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Outlook

Despite the restructuring, UPL's earnings per share (EPS) growth remains intact. Therefore, we maintain a BUY rating on the stock with an unrevised target price (TP) of Rs860, valuing it at 15x FY28e EPS.