UPL Shares: SEBI RA Deepak Pal Recommends ‘Buy On Dip’ At ₹640
Synopsis
While the stock could face short-term issues from regulatory changes, commodity volatility, and high debt, its global presence and strong fundamentals make it an attractive long-term pick, according to the analyst.
UPL shares are showing strong signs of a bullish buildup on the daily chart, having gained steadily for the past three sessions, according to SEBI-registered analyst Deepak Pal.
The stock has held above the key support level of ₹625 in the last week, and its 200-day exponential moving average (EMA) at ₹608 continues to offer firm support, reinforcing the bullish setup, Pal said.
On Tuesday, UPL stock opened at ₹641, reached a low of ₹638.50, and then closed at ₹645.50, trading above both its 14-day and 55-day EMAs, signaling underlying strength.
Momentum indicators, such as the relative strength index (RSI) and moving average convergence/divergence (MACD), are also trending positively, adding further support to the stock’s favorable outlook, the analyst added.
Pal also noted a double bottom pattern emerging around recent support levels, often seen as a reversal indicator. Based on this setup, a ‘buy on dip’ strategy near the ₹640–641 range appears attractive, with a tight stoploss placed at ₹625 to manage risk.
If the stock sustains current momentum, an upside move toward ₹660–665 could materialize in the short term.
UPL has a strong global footprint, with presence in over 130 countries. From a fundamental perspective, the stock trades at a P/E ratio of around 15x to 18x, with an EPS of ₹32–₹35.
Though its debt-to-equity ratio is slightly high due to aggressive global expansion, its book value remains strong. The company has an ROE of 10% to 11%, with promoter holding at around 27% to 28%.
Though UPL's long-term prospects look promising, it could face short-term risks from regulatory changes, commodity volatility, and high debt, Pal said.
Year-to-date, the company has gained over 28%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.