Decline in debt, jump in stock: UPL gives investors a pleasant surprise

Update shows 24% fall in debt; Arystra merger synergies a key re-rating trigger

During the current lockdown-led disruption in business, cash is king and a decline in debt is a pleasant surprise. And, if these come along with news that business is near normal, it would be taken pretty well by investors.

It is in this backdrop that UPL’s stock jumped 16.5 per cent on Thursday. In an update on debt reduction on Thursday, which also mentioned that demand for its products was normal, UPL stated that it had cash and cash equivalent of $875 million (Rs 6,600 crore) as of March 31.

The company sees its net debt falling by 24 per