UPL Limited

UPL.BO•agricultural-inputs

Current Price

702.95INR

per share

Fair Value

521.04INR

Overvalued

34.9%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 8.04%, lower than industry average of 10.85%.

Growth Trajectory

Profitability

In the growth phase company makes 10.64% profit on every dollar of sales, higher than industry average of 6.76%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.64% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

640.87B INR

Equity Value

439.98B INR

FCF Yield

65.97%

Average ROIC

10.35%

Cost of Capital

7.45%

P/E Ratio

13.43x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	464.11B INR	425.99B INR
Operating Income or EBIT	49.08B INR	16.24B INR
Interest Expense	31.52B INR	33.78B INR
Book Value Of Equity	321.99B INR	277.93B INR
Book Value Of Debt	250.99B INR	297.54B INR
Cash and Marketable Securities	99.23B INR	63.56B INR
Number of Shares Outstanding	844.43M	--
Minority interests	49.13B INR	0 INR
Current Stock Price	702.95 INR	--
Effective Tax Rate	10.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-1.91%

8.94%Company

10.85%Industry

Below Industry

Operating Margin

+3.82%

10.57%Company

6.75%Industry

Above Industry

UPL Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 62% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	395.31B INR	Add
Present Value (Cash Flow Over Next 10 Years)	245.55B INR	Add
Value of Operating Assets	640.87B INR	Sub-total
Debt	250.99B INR	Subtract
Minority Interests	49.13B INR	Subtract
Cash	99.23B INR	Add
Value of Equity	439.98B INR	Sub-total
Number of Shares	844.43M shares	Divisor
Estimated Value per Share (Fair Value)	521.03 INR	Total
Current Market Price	702.95 INR	Reference

Financial Projections

Total FCF Present Value

245.55B INR

Avg Revenue Growth

6.18%

Avg Operating Margin

10.64%

Avg ROIC

10.35%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	498.50B INR	538.56B INR	581.85B INR	628.61B INR	679.13B INR	729.11B INR	777.84B INR	824.54B INR	868.47B INR	908.86B INR	951.12B INR
Growth Rate	7.40%	8.03%	8.03%	8.03%	8.03%	7.35%	6.68%	6.00%	5.32%	4.65%	4.65%
PROFITABILITY
Operating Income	52.71B INR	57.17B INR	61.88B INR	66.98B INR	72.50B INR	77.83B INR	83.03B INR	88.02B INR	92.71B INR	97.02B INR	101.53B INR
Operating Margin	10.57%	10.61%	10.63%	10.65%	10.67%	10.67%	10.67%	10.67%	10.67%	10.67%	10.67%
EBIT (1-tax)	47.44B INR	51.45B INR	55.69B INR	60.28B INR	65.25B INR	66.93B INR	68.09B INR	68.65B INR	68.60B INR	67.91B INR	71.07B INR
CASH FLOW
Reinvestment	21.00B INR	22.69B INR	24.52B INR	26.49B INR	26.20B INR	31.08B INR	29.80B INR	28.02B INR	25.76B INR	26.96B INR	37.21B INR
Free Cash Flow	26.43B INR	28.75B INR	31.17B INR	33.79B INR	39.04B INR	35.85B INR	38.28B INR	40.62B INR	42.83B INR	40.95B INR	33.85B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	800.40B INR
Present Value	24.78B INR	25.28B INR	25.70B INR	26.12B INR	28.30B INR	24.27B INR	24.10B INR	23.69B INR	23.03B INR	20.22B INR	—
EFFICIENCY
ROIC	10.01%	10.39%	10.76%	11.12%	11.47%	11.25%	10.88%	10.47%	10.03%	9.57%	8.88%
Cost of Capital	6.64%	6.64%	6.64%	6.64%	6.64%	7.08%	7.53%	7.98%	8.43%	8.88%	8.88%
Sales/Capital	1.90x	1.90x	1.90x	1.90x	1.90x	1.56x	1.56x	1.56x	1.56x	1.56x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)