Should You Buy UPL right Now??

arunava (76)Memberin WORLD OF XPILAR • 2 months ago

UPL which stands for United Phosphorus Limited is an Agrochemical Company that deals in Agrochemicals, Fertilizer and other supplements. It is an Multinational Company from India that has a Marketcap of approximately 35000 Crore which is massive as the next company is Sumitomo Chemicals and it has a Marketcap of 18700 Crore. So you can guess the disparity in Marketcap.

But this company used to be 56000 Crore in Marketcap untill recently but the last quarter has been quite bad for the results of UPL and it's Stock price has dipped by approximately 40 percent due to heavy losses in the last quarter. This also made UPL the Second highest Agrochemical Company while it used to be the Topper before the DIP.

So now that UPL has had its huge DIP of approximately 40 percent it definitely is in an attractive position for people to start investing in. But there is also a few things that need to be answered before you start your investment in UPL.

The first thing that you should know is that UPL has gone through an issue called DUMPING which is a term we use in the Agrochemical Trade where Sales Officers just DUMP their products in Distributors Godowns just to make their Sale Target. But by doing so they inadvertently created a massive Gap in product demand for the next year.

The Second thing that you should know is that companies like UPL has to pay huge amounts of infrastructure costs every single year and it keeps in increasing every single year. So a year with low sales will definitely impact their Profits.

So we are back with the question of *** Should we Buy UPL right now?***

Personally I am very interested in buying UPL but I will be waiting for the results of this quarter before deciding if I want to take any position in UPL or not.