Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
United Phosphorus (UPL) figures among the top five generic agrichemical players
in the world, with a presence across major markets such as the US, EU,
Latin America and India.
The total off-patent market is worth US$29bn, of which mere US$16bn is currently
being catered by generic players. Furthermore, 61% of the same is controlled by
the five largest generic players, including UPL. Given the high entry barriers by way
of high investments, entry of new players is restricted. Thus, amidst this scenario
and on account of having a low-cost base, we believe UPL enjoys an edge over
competition and is placed in a sweet spot to leverage the upcoming opportunities
in the global generic space.
Over FY2011-13E, we expect UPL to post a 13% and 14% CAGR in sales
and PAT, respectively. At current valuations of 8.5x FY2013E EPS, the stock is
attractively valued compared to its global and domestic peers (18x)
and historic average (15x). Hence, we maintain our Buy rating on the stock
with a target price of `180.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
United Phosphorus (UPL) figures among the top five generic agrichemical players
in the world, with a presence across major markets such as the US, EU,
Latin America and India.
The total off-patent market is worth US$29bn, of which mere US$16bn is currently
being catered by generic players. Furthermore, 61% of the same is controlled by
the five largest generic players, including UPL. Given the high entry barriers by way
of high investments, entry of new players is restricted. Thus, amidst this scenario
and on account of having a low-cost base, we believe UPL enjoys an edge over
competition and is placed in a sweet spot to leverage the upcoming opportunities
in the global generic space.
Over FY2011-13E, we expect UPL to post a 13% and 14% CAGR in sales
and PAT, respectively. At current valuations of 8.5x FY2013E EPS, the stock is
attractively valued compared to its global and domestic peers (18x)
and historic average (15x). Hence, we maintain our Buy rating on the stock
with a target price of `180.
No comments:
Post a Comment