According to The Financial Express, UPL shares have experienced a 28% correction in 2026, marking a difficult year for the agrochemicals major. Despite this decline, global brokerage Jefferies has retained its 'buy' rating with a target price of ₹715 per share, implying approximately 26% upside potential from current levels. The brokerage believes the correction may have created an opportunity, as the decline has lowered market expectations and created more attractive valuations for investors.
As reported by The Financial Express, Jefferies highlighted Advanta, UPL's seeds business, as a key growth driver with strong double-digit revenue and EBITDA growth expected in FY27. The company had previously held back investments while focusing on debt reduction during FY2025 and FY2026, but is now increasing investments in new markets and distribution. UPL's recent acquisition of Egypt-based Misr Hytech Seeds for US$110 million could expand its presence in Africa, with the acquisition estimated to deliver an internal rate of return (IRR) of around 30%. Management expects Advanta to become a bigger earnings driver as the company increases its focus on this high-potential segment.
According to Jefferies analysis reported by The Financial Express, the company is reducing exposure to products, geographies and joint ventures that do not generate adequate returns. Recent developments include the closure of its Bioplanta joint venture in Brazil. Jefferies expects a 50-basis-point improvement in EBITDA margin in FY27 and projects 14% year-on-year EBITDA growth, supported by revenue growth, improved operational efficiency, and a better business mix. The brokerage projects 14% EBITDA growth in FY27, with the combination of earnings recovery, margin expansion and potential monetisation opportunities positioning UPL favourably for further upside.
As reported by The Financial Express, 15 out of 19 analysts maintain buy ratings on UPL despite the stock's recent correction. The brokerage analysis shows mixed price targets across major firms, with Jefferies at ₹715, 360 One at ₹801, Morgan Stanley at ₹658, Kotak Securities at ₹640, and Investec at ₹760. HSBC's Saurabh Jain has the highest price target of ₹880. UPL shares had previously recovered from a low ₹483 in November 2024 to a high ₹812.2 in December 2025, but have since corrected nearly 30%. Jefferies noted that while the company expects second-quarter growth to remain broadly in line with its full-year guidance of 10-14%, a stronger-than-expected El Niño remains a key risk factor.
According to The Financial Express, investors are closely watching developments around Advanta, UPL's seeds business, which has received SEBI approval for its initial public offering (IPO). Management plans to begin marketing the IPO soon, which could unlock significant value for shareholders. The brokerage also flagged UPL's disciplined inventory management in Latin America, where the company is maintaining tight control of stock levels amid concerns about the impact of El Niño weather conditions. Instead of pushing products to farmers ahead of the crop season, UPL is limiting advance sales, with Jefferies noting "tight control on inventory in Latam." These operational improvements support the company's strategic positioning for future growth.
