UPL, since a couple of days now has been on the downward swing, showing a lot of volatility. Today also is no different. The stock, which had closed yesterday at Rs.558.10, opened higher today at Rs.562.85, but soon slumped down to Rs.552 and is currently trading in the red.
There was in fact a positive development in the company.
Though the company is yet to confirm it, news is that it plans to acquire Corteva Agriscience's Mancozeb fungicide business, helping it gain a stronger foothold in Latin America, though overall it will contribute less than 2% to the total revenue. But HSBC, in ites research report stated that in Latin America, it is looking at a 40% demand scenario for Mancozeb which will work in favor UPL. It has put out a “buy” on the stock post this development.
This acquisition will give UPL ownership of the Dithane brand and RainShield technology.
The market has obviously ignored this piece of news and the overall mood of the Street has pulled down the stock.