Escorts Kubota Limited (ESCORTS) AI Stock Analysis

• Market Cap: ₹406.00B
• Dividend Yield: 0.75%
• Average Volume (3M): 7.77K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.48
• Revenue Growth: 15.71%
• EPS Growth: 101.96%
• Country: IN
• Employees: 3,897
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 28.70
• Shares Outstanding: 111,877,754
• 10 Day Avg. Volume: 7,915
• 30 Day Avg. Volume: 7,769
• PEG Ratio: 1.66
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 3.89
• P/FCF Ratio: 51.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,170.00
• Price Target Upside: -14.11% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹4,029.00 ▲(9.16% Upside)

Escorts Kubota Limited's strong financial performance is the most significant factor, supported by consistent revenue growth and a stable financial structure. Technical analysis indicates neutral market sentiment, while valuation metrics suggest a fair market price. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for the company's products, enhancing its market position and ensuring long-term business sustainability.

Financial Stability

A strong equity position with low leverage reduces financial risk, providing stability and flexibility for future growth and investment opportunities.

Profit Margins

Improving profit margins reflect effective cost management and operational efficiency, supporting sustainable profitability and competitive advantage.

Negative Factors

Free Cash Flow Variability

Inconsistent free cash flow growth can hinder the company's ability to invest in new opportunities and manage financial obligations, affecting long-term stability.

Equity Reliance

High reliance on equity financing may limit the company's ability to leverage debt for growth, potentially impacting return on equity and expansion capabilities.

Cash Flow Fluctuations

Fluctuations in cash flow can create uncertainty in financial planning and limit the company's ability to fund strategic initiatives consistently.

Escorts Kubota Limited Business Overview & Revenue Model

Company Description

Escorts Kubota Limited manufactures and sells agri machinery, construction equipment, and railway equipment in India and internationally. The company offers agricultural tractors under the Farmtrac, Powertrac, Steeltrac, and Digitrac brands; crop solutions; engines; spare parts; lubricants; and sprayers, harvesters, implements, planters, and gensets. It also provides construction, earth moving and material handling equipment, round and flat tubes, heating elements, double acting hydraulic shock absorbers for railways coaches, center buffer couplers, automobile shock absorbers, telescopic front fork and Mcpherson struts, brake blocks, internal combustion engines, and friction and rubber products. In addition, the company offers metal bonded and other products. Further, the company trades in oils and lubricants, implements, trailers, tractors, compressor accessories and spares, construction equipment, and earth moving and material handling equipment. The company was formerly known as Escorts Limited and changed its name to Escorts Kubota Limited in June 2022. Escorts Kubota Limited was incorporated in 1944 and is based in Faridabad, India.

How the Company Makes Money

Escorts Kubota Limited generates revenue primarily through the sale of its agricultural machinery, particularly tractors, which form the core of its business. The company benefits from a robust distribution network across India and exports its products to several international markets. In addition to tractor sales, ESCORTS earns revenue from its construction equipment division, which includes products such as excavators and loaders. The company also engages in the manufacturing of railway equipment and auto components, contributing to its diversification of revenue streams. Significant partnerships, such as the joint venture with Kubota Corporation, enhance its product offerings and market reach, further bolstering its earnings through shared technology and expanded distribution channels.

Escorts Kubota Limited Financial Statement Overview

Summary

Escorts Kubota Limited demonstrates strong financial health with consistent revenue growth and profitability. The company has a low debt-to-equity ratio, indicating low financial leverage and reduced risk. However, the variability in free cash flow growth requires attention.

Income Statement

Escorts Kubota Limited has shown strong revenue growth with a compounded annual growth rate in total revenue from 2020 to 2025. The company has maintained healthy gross profit margins, and net profit margins have improved over time, indicating effective cost management and operational efficiency. The EBIT and EBITDA margins are robust, highlighting strong profitability and operational performance.

Balance Sheet

The company has a strong equity position with a low debt-to-equity ratio, suggesting low financial leverage and reduced risk. Return on Equity (ROE) has shown improvement, reflecting efficient use of equity capital. The equity ratio is high, indicating a stable financial structure, although reliance on equity over debt may limit potential leverage benefits.

Cash Flow

The operating cash flow to net income ratio signifies efficient cash generation from operations. However, the growth in free cash flow has been inconsistent, reflecting fluctuations in capital expenditures and cash from operations. Despite this, the company maintains a positive free cash flow position, providing flexibility for future investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	103.81B	102.44B	98.04B	84.29B	72.83B	70.14B
Gross Profit	30.05B	29.11B	27.64B	22.48B	22.56B	23.29B
EBITDA	11.61B	11.24B	10.98B	7.78B	9.97B	11.29B
Net Income	23.60B	12.65B	10.77B	6.37B	7.36B	8.71B
Balance Sheet
Total Assets	0.00	130.98B	112.67B	100.85B	91.08B	68.78B
Cash, Cash Equivalents and Short-Term Investments	32.54B	32.54B	31.13B	20.80B	46.84B	28.26B
Total Debt	0.00	1.05B	530.90M	573.00M	519.50M	606.10M
Total Liabilities	-103.63B	27.36B	20.95B	19.02B	15.12B	18.53B
Stockholders Equity	103.63B	103.67B	91.76B	81.87B	76.00B	50.26B
Cash Flow
Free Cash Flow	0.00	7.80B	8.42B	51.20M	-1.54B	10.06B
Operating Cash Flow	0.00	10.03B	10.32B	2.24B	322.80M	11.31B
Investing Cash Flow	0.00	-1.94B	-9.28B	-617.70M	-18.57B	-21.94B
Financing Cash Flow	0.00	-7.02B	-766.80M	-712.20M	18.10B	10.03B

Escorts Kubota Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3690.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESCORTS, the sentiment is Neutral. The current price of 3690.9 is below the 20-day moving average (MA) of 3759.42, below the 50-day MA of 3709.05, and above the 200-day MA of 3503.53, indicating a neutral trend. The MACD of 21.68 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 12.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ESCORTS.

Escorts Kubota Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹287.05B	46.84	―	0.65%	7.34%	2.27%
ESCORTS	72 Outperform	₹406.00B	17.24	―	0.75%	15.71%	101.96%
TRITURBINE	68 Neutral	₹161.74B	47.29	―	0.75%	3.49%	8.54%
ZFCVINDIA	68 Neutral	₹265.73B	55.04	―	0.13%	4.02%	17.88%
SUNDRMFAST	66 Neutral	₹196.77B	35.52	―	0.84%	3.59%	1.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
THERMAX	58 Neutral	₹353.94B	56.36	―	0.48%	3.37%	-19.95%

Escorts Kubota Limited Corporate Events

Escorts Kubota Unveils Advanced Rice Transplanters in India

Escorts Kubota Limited has launched its third-generation Ride-On Rice Transplanters, the KA6 and KA8 models, in India. These machines, engineered in Japan, are designed to improve productivity and operator comfort with advanced features such as fuel-efficient engines, smart turning systems, and ergonomic layouts. The introduction of these transplanters across seven Indian states aims to address the rising demand for mechanized paddy solutions, thereby enhancing the efficiency and sustainability of agriculture in the country.

Escorts Kubota Limited Appoints New Deputy Managing Director

Escorts Kubota Limited has announced a change in its board of directors with the appointment of Mr. Akira Kato as the Whole-Time Director, designated as Deputy Managing Director. This strategic move, approved by the shareholders, is expected to enhance the company’s leadership structure and potentially strengthen its market position.