Escorts Kubota Limited (ESCORTS) AI Stock Analysis

• Market Cap: ₹406.48B
• Dividend Yield: 0.76%
• Average Volume (3M): 7.77K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.39
• Revenue Growth: 17.91%
• EPS Growth: 121.11%
• Country: IN
• Employees: 3,897
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 27.95
• Shares Outstanding: 111,877,754
• 10 Day Avg. Volume: 7,915
• 30 Day Avg. Volume: 7,769
• PEG Ratio: 1.82
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 3.94
• P/FCF Ratio: 51.08
• 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: ₹3,600.00
• Price Target Upside: -1.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ₹4,029.00 ▲(10.15% 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.

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 low leverage and high equity ratio enhance financial stability, while efficient operations boost cash flow generation. However, attention is needed on the variability in free cash flow growth to sustain long-term financial momentum.

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: Positive
• Last Price: 3657.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESCORTS, the sentiment is Positive. The current price of 3657.8 is above the 20-day moving average (MA) of 3618.45, above the 50-day MA of 3626.59, and above the 200-day MA of 3361.43, indicating a bullish trend. The MACD of 21.33 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 42.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ESCORTS.

Escorts Kubota Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESCORTS	―	₹406.48B	17.23	―	0.76%	17.91%	121.11%
SONACOMS	―	₹286.83B	48.66	―	0.66%	5.20%	1.76%
THERMAX	―	₹374.47B	52.76	―	0.42%	8.14%	-4.46%
SUNDRMFAST	―	₹204.50B	37.90	―	0.74%	4.14%	1.81%
TRITURBINE	―	₹166.57B	48.75	―	0.77%	9.94%	18.47%
ZFCVINDIA	―	₹247.53B	50.98	―	0.15%	1.74%	19.09%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Escorts Kubota Limited Corporate Events

Escorts Kubota Limited Reports Record Tractor Sales Growth in September 2025

Escorts Kubota Limited reported a significant increase in tractor sales for September 2025, with a 47.6% growth compared to the same month the previous year. This growth is attributed to favorable rural conditions, a well-distributed monsoon, improved water reservoir levels, and an early festive season. The domestic market saw a 48.5% increase in sales, while exports grew by 17.5%. The recent GST rate cut on tractors and farm machinery has further boosted market sentiment, and the company expects strong demand to continue throughout the year.

Escorts Kubota Closes Trading Window Ahead of Financial Results

Escorts Kubota Limited has announced the closure of its trading window in compliance with SEBI regulations to prevent insider trading. This closure will be in effect from October 1, 2025, until 48 hours after the company announces its unaudited financial results for the quarter and half-year ending September 30, 2025. This move is part of the company’s commitment to maintaining transparency and regulatory compliance, potentially affecting stakeholders by temporarily restricting trading activities.

Escorts Kubota Schedules Investor Meeting with Enam Asset Management

Escorts Kubota Limited has announced a virtual one-on-one meeting with Enam Asset Management Company Private Limited scheduled for September 12, 2025. This meeting is part of the company’s ongoing efforts to engage with institutional investors and analysts, ensuring transparency and fostering investor relations without disclosing any unpublished price-sensitive information.

Escorts Kubota Engages with Digital Marketplace to Boost Market Presence

Escorts Kubota Limited announced that its Chief Officer of the Tractor Business Division, Mr. Neeraj Mehra, will be engaging with Tractor Junction, a digital marketplace for farmers. This interaction signifies the company’s efforts to strengthen its digital presence and connect more effectively with its target market, potentially enhancing its market positioning and stakeholder engagement.

Escorts Kubota Announces Q2 Financials and Leadership Changes

Escorts Kubota Limited announced its unaudited financial results for the quarter ending June 30, 2025, during a board meeting. Key decisions included the resignation of Mr. Seiji Fukuoka as Deputy Managing Director and the appointment of Mr. Akira Kato as his successor. Additionally, the board approved the extinguishment of the Escorts Benefit Trust, impacting the company’s operational structure.