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Escorts Kubota Limited
(ESCORTS)
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Rating:77Outperform
Price Target:
₹3,489.00
▲(16.54% Upside)
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
Strong, conservative balance sheet
Very low leverage gives Escorts flexibility to fund capex, dealer/distribution support and absorb cyclical downturns without solvency strain. Conservatism reduces refinancing risk and preserves optionality for strategic investments or shareholder returns over the next several quarters.
Negative Factors
Inconsistent cash conversion
Inconsistent cash conversion—weak OCF in 2022–23 and OCF covering under half of net income in 2026—means reported earnings do not reliably become cash. That limits organic funding for capex, working capital and payouts, and increases reliance on disciplined working-capital or external funding choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong, conservative balance sheet
Very low leverage gives Escorts flexibility to fund capex, dealer/distribution support and absorb cyclical downturns without solvency strain. Conservatism reduces refinancing risk and preserves optionality for strategic investments or shareholder returns over the next several quarters.
Read all positive factors
Escorts Kubota Limited (ESCORTS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹326.54B
Dividend Yield1.72%
Average Volume (3M)9.23K
Price to Earnings (P/E)23.6
Beta (1Y)1.62
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. Volume15,529
30 Day Avg. Volume9,231
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)125.87
Revenue Forecast (FY)₹125.88B
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 | 11.24B | 10.98B | 7.78B | 9.97B |
| 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
3008.96
Negative
2987.83
Negative
3216.80
Negative
Market Momentum
-13.39
Positive
40.01
Neutral
9.84
Positive
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 below the 20-day moving average (MA) of 3050.33, below the 50-day MA of 3008.96, and below the 200-day MA of 3216.80, indicating a bearish trend. The MACD of -13.39 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 9.84 is Positive, 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 | ₹134.15B | 30.70 | ― | 0.18% | 5.21% | 3.32% | |
77 Outperform | ₹326.54B | 23.61 | ― | 1.72% | 17.98% | -41.45% | |
65 Neutral | ₹36.28B | 32.96 | ― | 0.48% | 17.02% | -5.12% | |
58 Neutral | ₹6.45B | 25.74 | ― | ― | 11.14% | -8.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
44 Neutral | ₹22.51B | -30.26 | ― | 6.23% | 8.81% | -248.88% | |
40 Underperform | ₹99.83B | -17.95 | ― | ― | 8.82% | 6.36% |
* General Sector Average
IN:ESCORTS
Escorts Kubota Limited
3,012.75
-691.16
-18.66%
IN:ACE
Action Construction Equipment Limited
1,121.70
-21.50
-1.88%
IN:HMT
HMT Ltd.
67.13
10.47
18.48%
IN:JISLDVREQS
Jain Irrigation Systems Limited
21.61
-9.41
-30.34%
IN:VSTTILLERS
VST Tillers Tractors Limited
4,107.65
-1,255.45
-23.41%
IN:INDOFARM
Indo Farm Equipment Ltd.
143.95
-114.50
-44.30%
Escorts Kubota Limited Corporate Events
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...
Escorts Kubota shuts trading window ahead of June-quarter results
Jun 22, 2026
Escorts Kubota Limited has announced that its trading window for dealing in the company’s equity shares will be closed for designated persons and their immediate relatives from July 1, 2026, until 48 hours after the announcement of its unaud...
Escorts Kubota Publishes AGM Notice and E-Voting Details for Shareholders
Jun 21, 2026
Escorts Kubota Limited, based in Faridabad, Haryana, operates in the engineering and manufacturing sector, with a focus on agricultural machinery and related equipment for domestic and international markets. The company is listed on both BSE and N...
Escorts Kubota Reschedules Analyst Meet, Reaffirms Disclosure Norms
Jun 16, 2026
Escorts Kubota Limited has notified the stock exchanges that its scheduled analyst and institutional investor meeting with IGE India Family Office, originally planned for June 16, 2026, has been postponed to June 23, 2026, with the time slot remai...
Escorts Kubota Leadership to Join YouTube Podcast for Market Outreach
May 29, 2026
Escorts Kubota Limited has announced that its Chairman and Managing Director, Nikhil Nanda, along with Deputy Managing Director Akira Kato, will participate in a podcast on the YouTube channel “The India Opportunity”. The company has i...
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.