UPL drops 23% in a month after the completion of buyback offer, now trading at a 52-week low

22 Jun 2022 , 01:58 PM

After the repurchase offer’s completion on May 20, 2022, shares of UPL fell to a 52-week low of Rs618.05, down 5% on the BSE in Wednesday’s intraday session, losing 23% in a month. The price of the pesticides and agrochemicals company’s stock dropped below the Rs625 record low it had previously reached on February 24, 2022.

At an average cost of Rs813.92 per share, UPL repurchased 13.43 million equity shares. 99.43% of the maximum repurchase size, or Rs1,094 crore, has been used by the business.

On April 7, 2022, the firm started its open market repurchase program from shareholders and other beneficial owners (other than the company’s promoters, promoter group, and persons in charge). Meanwhile, UPL reported on June 9 that Moody’s has reaffirmed the company’s investment-grade credit rating at Baa3 with a “stable outlook.”

UPL anticipates good success in the current fiscal year FY23, driven by superior growth of high-margin differentiated and sustainable solutions, increased penetration in select markets, and effective cost and supply chain management (10% + revenue growth and 12—15% EBITDA growth).

The business will keep putting emphasis on maximizing working capital and investments, which will raise ROCE and improve leverage ratios. The corporation is also committed to keeping its credit rating at investment-grade levels.