Shares in United Phosphorus (UPL) rose as much as 19 per cent on Monday after some brokerages upgraded the stock post March quarter earnings. UPL is a global generic crop protection, chemicals and seeds company.
In the March quarter, the company clocked a 38 per cent increase in its consolidated net profit at Rs 278.4 crore on account of strong sales.
This is the sixth consecutive quarter of earnings beat for UPL, global brokerage Morgan Stanley said. It upgraded its target on the stock to Rs 310 per share.
Domestic brokerage Kotak, which upgraded UPL to add from reduce, saying Q4 results call for higher valuation multiples. Initial efforts are visible in improved return on capital employed, Kotak said. The management is likely to address debt concerns, it add.
Deutsche Bank maintained its buy call on the stock (target Rs 270) saying new product launches will drive earnings growth.
The stock closed 19.8 per cent higher at Rs 276 on NSE compared to 0.3 per cent loss in the broader index Nifty.
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