Shares of UPL Ltd. plunged over 6% to the lowest in three years on Monday after it posted a net loss in the third quarter.
The sustainable agricultural solutions provider recorded a loss of Rs 1,607 crore in the October–December period, compared with a net profit of Rs 1,360 crore in the year-ago period, according to an exchange filing on Friday. Analysts polled by Bloomberg's had projected a consensus estimate of a Rs 5.2 crore profit.
UPL Q3 FY24 Earnings Highlights (Consolidated, YoY)
Revenue down 28% at Rs 9,887 crore. (Bloomberg estimate: Rs 11,060.4 crore).
Ebitda down 86% at Rs 416 crore. (Bloomberg estimate: Rs 1,635.8 crore).
Margin contracted to 4.2% vs 21.7% (Bloomberg estimate: 14.8 crore).
Net loss of Rs 1,607 crore vs. profit of Rs 1,360 crore (Bloomberg estimate: Rs 5.2 crore).
On the NSE, UPL's stock fell as much as 6.62% during the day to Rs 498.30 apiece, the lowest since Jan. 14, 2021. It was trading 5.57% lower at Rs 503.90 apiece, compared to a 0.05% decline in the benchmark Nifty 50 at 9:58 a.m.
The share price has declined 29.54% in the last 12 months. The total traded volume so far in the day stood at 9.6 times its 30-day average. The relative strength index was at 26, implying that the stock is oversold.
Twenty-one out of 32 analysts tracking UPL have a 'buy' rating on the stock, six recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 17.1%.
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