UPL Shares Extend Rally After Budget 2025 Gives Agriculture Sector A Boost

UPL Ltd.'s shares continued to rise after the Budget as the agriculture sector got a push from the government. The momentum is also supported by the third-quarter earnings of the company that beat estimates.

The PM Dhan Dhanya Krishi Yojana scheme is set to augment post-harvest storage at Panchayat, block level. It aims to improve the availability of short-, and long-term credit and benefit 1.5 crore farmers.

The finance minister stated the scheme aims to create ample opportunity for rural areas so migration is an option, not a necessity. Sitharaman said that as consumption of pulses has increased, the government is working towards self-sufficiency in pulses such as Tur, Urad, Masoor.

The revenue of the company was up 10.3% to Rs 10,907 crore against Rs 9,887 crore. The Bloomberg estimate was at Rs 10,935.5 crore. The company's Ebitda is up 5 times at Rs 2,162 crore compared to Rs 416 crore. The Bloomberg estimate was at Rs 1,905.9 crore. The Ebitda margin increased to 19.8% versus 4.2% while the Bloomberg estimated was 17.4%.

The net profit of UPL was Rs 828 crore compared to a loss of Rs 1,217 crore and the Bloomberg estimates was at Rs 197.8 crore.

UPL share price rose as much as 5.43% during the day to Rs 636.80 apiece on the NSE. It was trading 4.00% higher at Rs 628.15 apiece, compared to an 0.99% decline in the benchmark Nifty 50 as of 9:59 a.m.

It has risen 17.03% in the last 12 months. The relative strength index was at 71.47.

Eighteen out of the 25 analysts tracking the agro-chemical company have a 'buy' rating on the stock, six recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 660.08, implying an upside of 5.1%.