chemicals

UPL Limited

UPL · Nifty 50

₹614.4

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionchemicals sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score80/100 (STRONG). 2 positive flags, 4 concerns.
Historical Context44 similar technical setups. Average outcome: -9.4% decline. 0% positive.

Fundamental

80/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

UPL Limited scores 80/100 on fundamentals (strong). UPL Limited: BROAD EXPANSION regime.

Fundamental Score: 80/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 6.5% broken into three drivers. Each shows how efficiently the company generates returns.

ROE6.5%=
4.1%Net Margin
×
0.6xTurnover
×
2.7xLeverage

ROE of 6.53% is modest margin-driven and stable. Net margin of 4.1% × asset turnover of 0.58x × leverage of 2.7x.

What This Means

Net margin of 4.1% means the company keeps ₹4.1 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.58x means the company efficiently uses its assets to generate revenue. Leverage of 2.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

48.2%

Operating

12.5%

Net

4.1%

improving

Gross margin 48.2% → operating margin 12.5% → net margin 4.1%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 3.5x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

ADEQUATE

Interest covered only 2.2x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 2.3x is moderate.

Free Cash Flow

MODERATE

FCF margin at 9.8% — moderate. Generating cash after investments.

Peer Comparison

UPL Limited is compared against 10 peers in the chemicals sector.

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Key Watchpoints

🟢

Breaks above ₹645 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹584 (-5%)

Further downside risk

🟢

Chemicals sector entering leadership

Sector rotation signal

Detected Patterns

✅ High Earnings Quality: Cash flow covers earnings 3.5x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 2 Warning✅ 2 Positive6 total flags
🔴Unusual items are 30% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 17% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹689K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Audit risk elevated: 10/10
Governance

Potential accounting concerns. Cross-check with earnings quality flags.

✅Receivables decreasing — 8.1% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

✅Price/Sales: 1.0x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
27.3UNAVAILABLE
P/B Ratio
1.5HIGH
Market Cap
₹5157078.3L CrHIGH
From 52W High
76% of high
Sector Peers
10
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