Monday, 2 May 2011

United Phosphorus

United Phosphorus has acquired 10 companies and 12 products in the past seven years.

This has resulted in 30% compounded annual revenue growth over the past six years.


UPL will continue pursuing organic as well as inorganic growth, given a healthy cash balance of nearly Rs 1,900 crore and debt-to-equity ratio of 0.8.

The company has posted robust a double-digit growth in its bottomline during the last two quarters compared to the year-ago period.

The company's operating margin has been in the range of 18-20% over the last few quarters.

However, despite a decent financial performance, UPL's stock has underperformed the broader market. Given the company's strong product portfolio, its current valuation provides an attractive entry point with an upside potential.

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