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Escorts Kubota Limited
(ESCORTS)
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Rating:77Outperform
Price Target:
₹2,925.00
▼(-2.30% Downside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by strong financial performance—especially a very conservative balance sheet and meaningfully improved profitability—partly offset by inconsistent cash conversion. Technicals are moderately supportive in the near term (price above shorter-term averages with positive MACD) but tempered by being below the 200-day average. Valuation is reasonable at ~14x earnings with a modest dividend yield.
Positive Factors
Revenue Growth
Revenue has risen across 2021–2026, with growth re-accelerating in 2026. That sustained expansion indicates improving demand and operating scale for the equipment business, supporting a stronger base for dealer reach, reinvestment, and earnings generation over the next several quarters.
Negative Factors
Weak Cash Conversion
Operating cash flow was very weak in 2022–2023 and, even in 2026, covered less than half of net income. This gap means reported profits are not consistently converting into cash, potentially limiting internally funded investment and reducing confidence in earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Revenue has risen across 2021–2026, with growth re-accelerating in 2026. That sustained expansion indicates improving demand and operating scale for the equipment business, supporting a stronger base for dealer reach, reinvestment, and earnings generation over the next several quarters.
Read all positive factors
Escorts Kubota Limited (ESCORTS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹283.48B
Dividend Yield1.98%
Average Volume (3M)67.25K
Price to Earnings (P/E)20.5
Beta (1Y)1.50
Revenue Growth17.98%
EPS Growth-41.45%
CountryIN
Employees4,323
SectorGeneral
Sector StrengthN/A
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)125.70
Shares Outstanding111,877,754
10 Day Avg. Volume23,201
30 Day Avg. Volume67,246
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)2.44
Price to Sales (P/S)2.61
P/FCF Ratio28.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹3,400.00Price Target Upside13.57% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)124.98
Revenue Forecast (FY)₹125.89B
Escorts Kubota Limited Business Overview & Revenue Model
Company Description
Escorts Kubota Limited, an Indian company established in 1944 and based in Faridabad, operates as a global manufacturer and supplier across three primary sectors: agricultural machinery, construction equipment, and railway components. Within its a...
How the Company Makes Money
Escorts Kubota Limited makes money primarily by selling equipment, with tractors typically being the core revenue driver. Its main revenue streams generally include: (1) sales of farm equipment—tractors across horsepower categories and related agr...
Escorts Kubota Limited Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 122.48B | 115.40B | 102.44B | 98.04B | 84.29B | 72.83B |
| Gross Profit | 30.64B | 35.05B | 29.11B | 27.64B | 22.48B | 22.56B |
| EBITDA | 20.95B | 20.86B | 11.72B | 11.41B | 7.92B | 10.10B |
| Net Income | 13.83B | 23.94B | 12.65B | 10.77B | 6.37B | 7.36B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 157.99B | 130.98B | 112.67B | 100.85B | 91.08B |
| Cash, Cash Equivalents and Short-Term Investments | 67.29B | 69.84B | 32.54B | 31.13B | 20.80B | 46.84B |
| Total Debt | 0.00 | 1.62B | 1.05B | 530.90M | 573.00M | 519.50M |
| Total Liabilities | -123.69B | 34.30B | 27.36B | 20.95B | 19.02B | 15.12B |
| Stockholders Equity | 123.69B | 123.73B | 103.67B | 91.76B | 81.87B | 76.00B |
Cash Flow | ||||||
| Free Cash Flow | 3.41B | 10.64B | 7.80B | 8.42B | 51.20M | -1.54B |
| Operating Cash Flow | 4.77B | 13.81B | 10.03B | 10.32B | 2.24B | 322.80M |
| Investing Cash Flow | -3.19B | -11.28B | -1.94B | -9.28B | -617.70M | -18.57B |
| Financing Cash Flow | -2.22B | -4.20B | -7.02B | -766.80M | -712.20M | 18.10B |
Escorts Kubota Limited Technical Analysis
Negative
2993.85
Price Trends
2834.36
Negative
2891.43
Negative
3055.95
Negative
Market Momentum
-57.89
Positive
36.95
Neutral
35.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESCORTS, the sentiment is Negative. The current price of 2993.85 is above the 20-day moving average (MA) of 2696.94, above the 50-day MA of 2834.36, and below the 200-day MA of 3055.95, indicating a bearish trend. The MACD of -57.89 indicates Positive momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ESCORTS.
Escorts Kubota Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹118.58B | 27.10 | ― | 0.20% | 5.21% | 3.32% | |
77 Outperform | ₹283.48B | 20.50 | ― | 1.98% | 17.98% | -41.45% | |
65 Neutral | ₹33.31B | 30.55 | ― | 0.65% | 17.02% | -5.12% | |
57 Neutral | ₹5.55B | 22.26 | ― | ― | 11.14% | -8.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | ₹78.27B | -13.77 | ― | ― | 8.82% | 6.28% | |
44 Neutral | ₹20.77B | -26.64 | ― | 6.23% | 8.81% | -248.88% |
* General Sector Average
IN:ESCORTS
Escorts Kubota Limited
2,577.10
-1,151.01
-30.87%
IN:ACE
Action Construction Equipment Limited
995.75
-104.68
-9.51%
IN:HMT
HMT Ltd.
52.40
-3.70
-6.60%
IN:JISLDVREQS
Jain Irrigation Systems Limited
19.30
-11.89
-38.12%
IN:VSTTILLERS
VST Tillers Tractors Limited
3,850.10
-2,099.13
-35.28%
IN:INDOFARM
Indo Farm Equipment Ltd.
115.55
-118.45
-50.62%
Escorts Kubota Limited Corporate Events
Escorts Kubota files SEBI dematerialization compliance certificate for September quarter
Oct 7, 2026
Escorts Kubota Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate from Kfin Technologies ...
Escorts Kubota Names Manish Sharma President of Agri Business
Sep 21, 2026
Escorts Kubota Limited is an India-based engineering company with a significant presence in the agricultural machinery sector, focusing on tractors, agri solutions, and related service and spare parts for both domestic and international markets. T...
Escorts Kubota Posts 19% Tractor Volume Growth in August on Strong Domestic Demand
Sep 1, 2026
Escorts Kubota Limited reported strong growth in its Agri Machinery Business for August 2026, with total tractor sales rising 19.1% year-on-year to 10,072 units from 8,456 units a year earlier. Domestic tractor sales grew 20.5% to 9,523 units, whi...
Escorts Kubota July Tractor Sales Jump 22% on Resilient Rural Demand
Aug 1, 2026
Escorts Kubota Limited reported a strong rise in tractor sales for July 2026, underscoring resilient rural demand despite macro uncertainties. The company’s Agri Machinery Business sold 8,731 tractors in the month, up 22% from July 2025, wit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.