Keeping in mind the recent uptick in the Indian market with the upcoming elections and the March quarter earnings in focus, brokerage house Anand Rathi has come out with 2 emerging picks with a time horizon of 30-90 days.
Deven Choksey says: “Whether the UPL right issue is largely to free up whatever the net components that have in the balance sheet or whether this right issue is largely intended for a higher amount of capacity expansion, I would like to believe the former is true than the later, because already a significant amount of capacities have been built.”
UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 46552.69 Crore) operating in Pesticides/Agro Chemicals sector.
UPL is a strong buy for long-term investors looking for a stock in the agrochemical industry. The company has experienced a 50% fall in stock value from the top, but this is expected to improve in the second half. UPL is amongst the top five agrochemical companies globally and had reduced and structured its debt. Additionally, it had taken measures such as focusing on cost reduction and inventory liquidation. In contrast, Hikal has experienced many regulatory challenges and struggles with corporate governance issues, and it is therefore not advisable to invest in.