UPL’s Friday Bounce? Volume Surge and Analyst Optimism Fuel Comeback Hopes

UPL Limited is showing early signs of a potential turnaround as trading volume surged past 3.96 million shares on Friday morning—more than double its weekly average. The stock opened at ₹636.5, down from the previous close of ₹650.7, but analysts are watching closely for a rebound, citing improving fundamentals and a stabilizing global agrochemical outlook.

 

Despite a modest -0.26% return over the past three months, UPL has delivered a 2.95% gain in the last month, suggesting short-term momentum is building. Its six-month beta of 1.02 indicates the stock is moving in line with broader market trends, offering a degree of stability amid sector volatility.

 

Analysts forecast strong earnings growth of over 44% annually for the next three years, with EPS expected to rise by 45% per year. Return on equity is projected to reach 12.2%, driven by cost optimization, new product launches, and a gradual recovery in global demand.

 

However, recent earnings have been mixed. While revenue exceeded expectations, EPS lagged behind, reflecting margin pressures and currency headwinds. Still, with a price-to-earnings ratio of 59.9 and a market cap of ₹53,748 crore, UPL remains a heavyweight in the agrochemical space.

 

Friday’s session could be pivotal. If the stock holds above ₹630 and sustains volume, technical analysts see room for a short-term rally toward ₹665–₹685. For investors, the question is whether this is a dead-cat bounce—or the start of a broader recovery.

 

Sources: Economic Times, Simply Wall St, TradingView