UPL Shares: SEBI RA Deepak Pal Recommends ‘Buy On Dip’ At ₹640

UPL shares are showing strong signs of a bullish buildup on the daily chart, having gained steadily for the past three sessions, according to SEBI-registered analyst Deepak Pal.

The stock has held above the key support level of ₹625 in the last week, and its 200-day exponential moving average (EMA) at ₹608 continues to offer firm support, reinforcing the bullish setup, Pal said.

On Tuesday, UPL stock opened at ₹641, reached a low of ₹638.50, and then closed at ₹645.50, trading above both its 14-day and 55-day EMAs, signaling underlying strength.

Momentum indicators, such as the relative strength index (RSI) and moving average convergence/divergence (MACD), are also trending positively, adding further support to the stock’s favorable outlook, the analyst added.

Pal also noted a double bottom pattern emerging around recent support levels, often seen as a reversal indicator. Based on this setup, a ‘buy on dip’ strategy near the ₹640–641 range appears attractive, with a tight stoploss placed at ₹625 to manage risk.

If the stock sustains current momentum, an upside move toward ₹660–665 could materialize in the short term.

UPL has a strong global footprint, with presence in over 130 countries. From a fundamental perspective, the stock trades at a P/E ratio of around 15x to 18x, with an EPS of ₹32–₹35.

Though its debt-to-equity ratio is slightly high due to aggressive global expansion, its book value remains strong. The company has an ROE of 10% to 11%, with promoter holding at around 27% to 28%.

Though UPL's long-term prospects look promising, it could face short-term risks from regulatory changes, commodity volatility, and high debt, Pal said.

Year-to-date, the company has gained over 28%.

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