"We believe that UPL’s balance sheet is protected and that its global crop pesticides business is undervalued,” HSBC Securities said. The stock has also recently received a ‘buy’ rating from Citi.
Recent brokerage reports bearing positive outlook on business prospects for agri-chemical companies in Latin America seemed to have weighed in on the stock's upward move.
Jefferies advised caution, with valuations for chemical companies trending above their historical averages. The broker believes that India's chemicals sector is a Goliath in the making
Since the broader markets are overstretched, failing to clear the high might trigger some profit-booking. Traders should remain extremely stock-specific and follow strict stop-losses, advised experts
Hindalco Industries has seen a breakout of downward sloping resistance trendline adjoining highs of January 18, September 4 and September 12, with a strong volumes, which is a positive sign.
While analysts and investors have moved away from UPL in anticipation of bleak prospects, the last two quarters of FY24 are expected to see improvement in demand for agrochemicals globally
According to the data from Moneycontrol's July analyst call tracker, several companies have seen significant downgrades by brokerages over the past month.