Saturday, June 9, 2012

UNITED PHOSPHORUS LTD - BUY


 
 United Phosphorous India’s largest Agrochemical company is trading @ Rs.111 which is close to its multi year low.Recent crash in share price is mainly on account of the CCI order against the company . CCI has levied a penalty of Rs. 252.44 crores on the Company for alleged violation of sections 3(3)(b) and 3 (3) (d) of Competition Act, 2002.UPL is a 7500 Cr company with operations in more than five countries and generating 75 %of its revenue from outside India.On a global level it is one among the largest five generic agrochemical makers.Company selling Insecticides,Fungicides,Herbicides,Rodenticides,Plant growth Regulators and Seeds under various brand names in USA,EU, Latin America  and  India.Last year company made two large acquisitions in Brazil - Sipcam Isagro Brazil and DVA Agro Do Brazil.Since Brazil is one of the biggest markets for Agrochemicals ,these acquisitions is expected to bring good result to UPL on completion of the business integration.In last FY , company posted a turnover of Rs.7654 Cr ,net profit of Rs.555 Cr and an EPS of Rs.12/-. Recently company announced a buy back of its shares with a maximum price of Rs.150/- share. Now company informed that it is  taking  steps to file appeal against the order of CCI before the Competition Appellate Tribunal.All negatives in this matter is already reflecting in its current price and any positive outcome from the Appellate Tribunal will boost its share price .Moreover the buyback will also act as a cushion from further fall in share price . I feel the current difficult time is only temporary  and company will come out of it soon and hence it is the best time to enter in it at current market price of Rs.111/- with  a long term view.

30 comments :

  1. Hello Sir,

    Can you please give your valuable advice on Camson BioTech. Presently it is trading (Rs 39.8) near 52 week low price. Should i average on this price.

    ReplyDelete
  2. Dear VP, Any advantages for UPL on the changes happening on Advanta LTD.

    Regards
    Naveen

    ReplyDelete
  3. Hello sir,
    Expecting your valuable advice on Polyplex and uflex

    ReplyDelete
    Replies
    1. Prefer paper products from packaging sector

      Delete
    2. Dear Value sir,

      Do you know what making downfall of Uflex and bilcare. While Quarter result is also not bad.
      What is your fundamental view on bilcare.

      Delete
  4. o you recommend ramky infra as good buy at cmp?

    you recommended this scrip earlier. now available at lower level. do you suggest buy for med- to long term?

    ReplyDelete
    Replies
    1. Recommended to Avoid later after the CBI inquiry issue came to light.

      Delete
  5. Valuebhai,
    The UPL has been on downtrend for a long time. How to do see the results for next year with RE being at around 55 levels as the company has acquired few companies in Brazil and else where.
    Do you see the profitability being affected due to that or it will benefit the company?

    ReplyDelete
  6. Hello Sir,

    Any suggestion on HDIL to buy at CMP for medium term ?

    ReplyDelete
  7. Dear Valueji

    First thanks for the valuable information you provide.

    I need your advice on Atul Auto and Berger Paints.

    Regards
    Kamal

    ReplyDelete
    Replies
    1. Dear Kamal

      I have recommended Atul Auto even before the rights issue (Rs.30/= share) @ Rs.71 .Now after the rights it is quoting above Rs.170 , already given multibagger kind appreciation

      See the below link :

      http://value-picks.blogspot.in/2010/06/atul-auto-shining-in-crowd.html


      It is a hold for me @ CMP

      Not tracking Berger Paint.

      Delete
    2. What is your view on Atul auto now?

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    3. what is you view on Atul auto at nearly 105?

      Delete
  8. sir, what is your view on madhucon projects?

    ReplyDelete
  9. Hello sir,

    What is your view on Himadari chemicals.

    ReplyDelete
  10. Dear VP Sir
    if ur tracking prime focus please advice on medium to long term.
    Thanks for your valuable analysis.
    I have been following your posts but have not utilized yet will be starting very soon.

    ReplyDelete
  11. dear value,
    once a darling of market, SRF Ltd., is now cornerside stock. whats ur view for it for long term. can there is a chance of many folds?
    PATIDAR

    ReplyDelete
  12. dear value
    i cant understand the business of Gateway distriparks. can it involve in cold storage and warehouse business?
    PATIDAR

    ReplyDelete
  13. Granules India showing something. Can it perform like your recommendation Indag Rubber & Cochin Mineral.s . These 2 stocks have given 3-5 times returns from the time you have recommended.

    ReplyDelete
    Replies
    1. Chances for very good growth in Granules.

      Delete
  14. Dear VP,

    Tata Chemicals, how do you see this company at current rate. Any updates after your last recommendation statements.

    Regards

    Naveen

    ReplyDelete

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