All the positives like worldwide diversification, push into value added products like NPP, synergy with acquired Company etc on the one hand are being weighed against the huge debt, rising interest rate, potential global recession, bloating in work capital and currency weakening against the USD.
Also UPL has guided higher and any negative earnings surprise will weigh this down further along with FII selling of Indian equities.
My personal bet is that UPL will manage it’s debt eventually, may be acquired which will EVENTUALLY lead to rerating. However market has written off UPL until it gets to a comfortable DE ratio.
DISCLOSURE – Invested at 750 avg price, underwater, but aim to hold for long time.
I am a confirmed IDIOT. Words are not recommendations
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