06 August 2011

BUY United Phosphorus Limited (UNPO.BO) Research Tactical Idea:: Morgan Stanley Research,

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United Phosphorus Limited (UNPO.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 30 days.
This is because of an earnings release. United Phosphorus reported Q1F12 results with revenue, EBITDA and PAT
growth of 27%, 19% and 30%, respectively. Volume growth in the quarter was 25% while we were expecting  11% growth.
High crop commodity prices, high farm incomes, rising input costs, and compelling valuation are likely key catalysts for a
re-rating, in our view.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: Attractive

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