UPL shares fall 12% after HSBC Research cites business headwinds
Updated : June 20, 2019 01:51 PM IST
Shares of United Phosphorus Limited (UPL) fell 12.31 percent intraday on Thursday after HSBC Research raised concerns on declining soyabean demand, pricing pressure from the US-China trade tensions and the African swine fever (ASF).
The brokerage house said, “Soyabean demand and pricing are likely to remain under pressure due to the as-yet unresolved US-China trade tensions, events like ASF and the rising US exports to the EU and other countries, which could keep Brazil price premiums in check, unlike in 2018.”
About 35 percent of UPL’s overall revenues come from Brazil and other Latin American regions. This year, the Brazil exports have already declined 9 percent.