United Phosphorous leaped up a solid 7.5% to Rs 177 in afternoon trades as the market sees improved prospects for the company if the monsoon proves adequate.

The scrip of the agrochemicals company had even hit a high of Rs 180.80, earlier. Around 2.4 lakh United Phosphorous shares were registered as volumes on BSE by the end of one half of trading.

The stock staged a recovery from a low of Rs 121 around mid-April 2003. From that low, the stock recovered to the current Rs 177 . The rally on the counter has come amid intermittent corrections. The stock is the favourite of local mutual fund Alliance Capital Mutual Fund, which had a holding of over 4% in UPL as on 31 May 2003.

The latest surge on the counter comes on expectations that the monsoon this year would be near normal as has been predicted by the weather department. The fortunes of the agrochemicals sector are linked to monsoon. The monsoon has already hit Kerala and it is expected to progress into other parts of the country gradually.

UPL  is  a  leading  international  producer  of  generic  crop  protection products,  intermediates  and other industrial chemicals. It is one of the largest agrochemical producers in India with a wide range of products that include  fumigants,  fungicides, insecticides, rodenticides and herbicides.

The company has also been focussing on exports with product registrations abroad. The US and the UK are its majors markets accoutning for over 75% of exports. UPL, currently, has eight product registrations in the US and 30 across Europe. UPL is targeting 2-3 product registrations in the U.S. over the next few years. It is also looking at inorganic growth in this market.

For the full year ended 31 March 2003, UPL registered a 10% growth in net profit after tax to Rs 54.27 crore on a 9% growth in sales to Rs 658.71 crore. The company was able to arrest the decline in sales in the domestic market to some extent and perform better than the industry growth, mainly due to four new products launched in the domestic market.