Escorts Kubota Ltd logo

Escorts Kubota Ltd

ESCORTS NSE

Escorts Ltd. is one of India’s leading engineering conglomerates engaged in the manufacturing of Agri-machinery, Construction & Material Handling Equipment and Railway Equipment. [1]

AI Verdict: HOLD Confidence: 5%

Escorts Kubota trades at a reasonable PE of 13.1x with near-zero debt, but poor sales growth of 10.5% over 5 years, declining promoter holding by 4.86%, and deteriorating working capital (83.6 to 195 days) limit upside. The stock's -13% 1-year return reflects market concerns despite the Kubota parentage advantage.

Key Fundamentals

SmallcapTractorsAutomobiles
Market Cap
₹33,475 Cr
Volatility
Moderate
P/E Ratio
13.78
EBITDA
₹2,063 Cr
Return on Equity
11.44%
Debt to Equity
0.01
Book Value
₹1,107.32
EPS
₹95.23
52W High
₹4,180
52W Low
₹2,700

Technical Indicators

Key Insights

Strengths

3
  • Company is almost debt free.
  • Company has delivered good profit growth of 19.6% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 22.4%

Weaknesses

4
  • Stock is trading at 2.65 times its book value
  • The company has delivered a poor sales growth of 10.5% over past five years.
  • Earnings include an other income of Rs.1,618 Cr.
  • Promoter holding has decreased over last 3 years: -4.86%

Growth Rate

Revenue Growth
13.09% ↗
Net Income Growth
21.56% ↗
Cash Flow Change
37.68% ↗
ROE
1.84% ↗
ROCE
11.88% ↗
EBITDA Margin (Avg.)
12.18% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Escorts Kubota trades at a reasonable PE of 13.1x with near-zero debt, but poor sales growth of 10.5% over 5 years, declining promoter holding by 4.86%, and deteriorating working capital (83.6 to 195 days) limit upside. The stock's -13% 1-year return reflects market concerns despite the Kubota parentage advantage.

Bull Case 7
  • Company is almost debt free, providing significant financial flexibility and resilience during economic downturns
  • Attractive PE of 13.1x relative to industrial sector peers, suggesting reasonable valuation for a market cap of Rs.31,391 Cr company
  • Strong 10-year stock CAGR of 30% demonstrates long-term wealth creation track record
  • Healthy dividend payout of 22.4% with current yield of 1.82%, offering income support during sideways markets
  • Compounded sales growth of 13% on TTM basis shows improving revenue momentum versus the 5-year average of 10%
  • 3-year compounded profit growth of 26% significantly outpaces sales growth, indicating margin expansion and operating leverage
  • Kubota partnership (51% promoter) brings global technology access, R&D capabilities, and export market opportunities
Bear Case 8
  • Working capital days have ballooned from 83.6 to 195 days, signaling serious deterioration in cash conversion efficiency
  • Promoter holding has decreased by 4.86% over last 3 years, raising concerns about insider confidence
  • Poor 5-year sales CAGR of only 10.5% in a growing Indian farm and construction equipment market
  • ROE of 12.3% over 3 years is below the 15%+ threshold expected for quality industrials, indicating suboptimal capital allocation
  • Stock trading at 2.55x book value is expensive given the low ROE of 12%, as PB/ROE ratio suggests overvaluation
  • Earnings quality concern with other income of Rs.1,618 Cr forming a significant portion of profits
  • Negative 1-year stock return of -13% reflects sustained selling pressure and weak near-term sentiment
  • Only 25% analyst buy ratings with 50% hold and 25% sell out of 16 analysts, indicating limited conviction

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 4
  • Stock down 26% in 2026 May 28

    Escorts Kubota shares trading at ₹2,830, down 12% in the last month and 26% YTD in 2026 despite strong sales growth.

  • Tractor exports decline 35% May 28

    Tractor exports fell 35% YoY to 423 units in May 2026 from 651 units in May 2025, indicating weak international demand.

  • Rising input costs, crop risks May 28

    Company flagged rising input costs (particularly fertilizers), softer prices for select cash crops, and geopolitical uncertainties that could affect customer affordability ahead of kharif season.

  • El Nino may hit rainfall May 28

    Emerging El Nino conditions may influence rainfall distribution, though strong reservoir levels provide some buffer.

Positives 4
  • Tractor sales surge 18.9% YoY Jun 1

    May 2026 tractor sales rose 18.9% YoY to 12,310 units with domestic volumes up 22.5% to 11,887 units, signaling strong rural demand.

  • Construction equipment up 40.2% Jun 1

    Construction equipment sales grew 40.2% YoY to 450 units in May 2026, supported by ongoing infrastructure projects.

  • NeoStar tractor range launched May 28

    Launched Kubota NeoStar compact tractors in 21-30 HP segment targeting horticulture farmers across Maharashtra, Karnataka, MP, and Gujarat with narrow and standard variants.

  • Emission intensity down 6.3% Jun 19

    BRSR for FY26 reported a 6.3% drop in emission intensity and 2.3% renewable energy usage, improving ESG profile.

Neutral 6
  • Trading window closed for Q1 Jun 22

    Trading window closed for designated persons from July 1, 2026, until 48 hours after Q1FY26 results declaration.

  • Final dividend record date July 3 Jun 12

    Record date for FY26 final dividend set as July 3, 2026; 80th AGM scheduled for July 15, 2026.

  • ₹28.39 Cr block trade on NSE May 29

    Block deal of ~99,802 shares executed at ₹2,845 per share totaling ₹28.39 crores, indicating institutional activity.

  • Multiple investor meetings scheduled Jun 4

    Meetings with Invisage Capital, Anand Rathi (Jun 9-10), BofA Securities virtual meet (Jun 3), and CFO Reuters interaction scheduled.

  • IEPF share transfer notice May 28

    Notice issued for transfer of equity shares to IEPF for unclaimed dividends; shareholders must claim by August 26, 2026.

  • Leadership on India podcast May 29

    CMD and DMD featured on The India Opportunity podcast to discuss business outlook.

TL;DR: Escorts Kubota is delivering strong operational performance with 18.9% tractor sales growth and 40.2% construction equipment growth in May 2026, complemented by new product launches in the compact tractor segment. However, the stock is down 26% YTD due to export weakness, rising input costs, and geopolitical concerns weighing on sentiment. Rural fundamentals remain supportive but monsoon progression, El Nino risks, and input cost trends are key monitorables for the near term.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,214
2,355
2,478
2,728
2,301
2,574
2,277
2,948
2,445
2,500
2,792
3,280
2,968
Expenses
1,981
2,024
2,214
2,402
2,015
2,259
2,047
2,616
2,158
2,179
2,432
2,846
2,588
Operating Profit
233
331
264
325
285
315
230
332
287
321
360
435
381
OPM %
11%
14%
11%
12%
12%
12%
10%
11%
12%
13%
13%
13%
13%
Other Income
86
99
94
129
133
140
140
143
178
1,260
134
102
122
Interest
4
3
9
11
12
11
10
4
5
4
5
6
6
Depreciation
38
40
58
57
59
59
61
62
62
60
62
64
69
PBT
278
386
290
386
347
385
299
410
398
1,518
427
466
428
Tax %
22%
25%
27%
23%
22%
22%
-8%
22%
20%
8%
26%
23%
25%
Net Profit
216
290
211
299
270
302
324
321
318
1,397
318
358
321
EPS in Rs
16.41
26.24
19.05
27.01
24.43
27.3
28.98
28.66
28.46
125
28.44
32.03
28.65
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
4,113
3,432
4,145
5,059
6,262
5,810
7,014
7,283
8,429
9,804
10,244
11,540
Expenses
4,039
3,271
3,878
4,506
5,539
5,149
5,888
6,317
7,659
8,673
9,080
10,044
Operating Profit
73
161
268
553
723
661
1,126
966
770
1,130
1,164
1,496
OPM %
2%
5%
6%
11%
12%
11%
16%
13%
9%
12%
11%
13%
Other Income
124
31
36
58
99
88
160
174
228
525
601
1,618
Interest
58
51
32
29
20
17
13
15
13
42
29
20
Depreciation
69
58
63
73
87
107
118
132
150
224
244
255
PBT
70
82
208
509
715
625
1,155
993
835
1,390
1,492
2,838
Tax %
-8%
15%
37%
32%
33%
25%
25%
26%
24%
23%
15%
16%
Net Profit
76
70
131
347
478
472
872
736
637
1,077
1,265
2,394
EPS in Rs
6.23
5.76
10.71
28.31
39.07
38.53
64.63
55.82
48.26
97.44
113
214
Div. Payout %
19%
21%
14%
7%
6%
6%
12%
13%
14%
18%
25%
24%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
119
123
123
123
123
123
135
132
132
110
112
112
Reserves
1,711
1,344
1,498
2,093
2,551
2,995
4,891
7,468
8,055
9,278
10,255
12,261
Borrowings
484
368
265
51
281
48
61
52
57
448
105
162
Other Liabilities
1,235
1,134
1,313
1,706
1,753
1,849
1,791
1,456
1,841
2,563
2,623
3,257
Total Liabilities
3,550
2,968
3,199
3,973
4,707
5,014
6,878
9,108
10,085
12,400
13,095
15,792
Fixed Assets
1,596
1,539
1,581
1,588
1,647
1,702
1,796
1,841
1,891
2,165
2,053
2,146
CWIP
56
58
35
66
80
125
65
88
114
161
153
200
Investments
373
64
212
549
491
797
1,938
4,836
4,767
5,019
5,605
8,281
Other Assets
1,526
1,307
1,371
1,770
2,489
2,390
3,079
2,343
3,313
5,054
5,284
5,165
Total Assets
3,550
2,968
3,199
3,973
4,707
5,014
6,878
9,108
10,085
12,400
13,095
15,792
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-10
212
304
460
-234
797
1,129
32
224
789
1,003
1,381
Investing
17
-44
-155
-374
-18
-421
-2,195
-1,856
-62
-759
-194
-1,127
Financing
1
-191
-113
-1
191
-300
1,003
1,810
-71
25
-702
-420
Net Cash Flow
8
-23
36
85
-61
76
-63
-14
91
54
107
-166
Free Cash Flow
-65
166
238
354
-387
607
1,013
-120
11
521
757
1,069
CFO/OP
15
127
130
102
-2
147
123
30
53
91
117
130
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
37
40
40
43
54
46
34
40
51
53
47
38
Inventory Days
64
70
58
61
73
84
56
62
73
90
70
66
Days Payable
92
115
117
132
107
123
94
66
75
87
82
98
Cash Conversion Cycle
9
-5
-19
-29
21
7
-3
36
49
57
35
6
Working Capital Days
-17
-39
-39
-26
12
9
-4
30
39
31
25
1
ROCE %
7%
8%
13%
26%
28%
21%
28%
16%
11%
14%
14%
14%

Shareholding Pattern

As of Mar 2026
Promoters 68.04%
DIIs 11.65%
Public 10.48%
FIIs 5.72%
Others 4.10%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Feb 2022Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023May 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
36.59%
36.59%
36.59%
30.25%
28.10%
28.10%
72.90%
72.90%
72.90%
72.90%
67.64%
67.64%
67.64%
67.64%
67.64%
67.64%
68.04%
68.04%
68.04%
68.04%
68.04%
68.04%
68.04%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6.69%
0.00%
5.85%
6.43%
6.32%
5.89%
5.22%
5.22%
5.27%
5.25%
5.72%
DIIs
5.60%
5.63%
7.63%
8.57%
8.28%
0.40%
6.20%
7.61%
8.49%
8.11%
9.41%
9.85%
9.35%
10.41%
9.76%
10.37%
10.21%
10.20%
11.34%
11.43%
11.80%
12.20%
11.65%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
17.15%
21.18%
18.57%
21.01%
19.74%
9.41%
12.15%
10.35%
10.16%
9.87%
11.79%
11.78%
11.25%
11.90%
11.89%
10.98%
11.02%
11.37%
10.99%
11.03%
10.75%
10.40%
10.48%
Others
40.65%
36.60%
37.21%
40.18%
43.88%
62.09%
8.74%
9.14%
8.44%
9.12%
11.15%
10.72%
5.07%
10.05%
4.86%
4.57%
4.40%
4.50%
4.41%
4.27%
4.14%
4.11%
4.10%
No. of Shareholders
1,38,576
2,31,476
1,86,617
1,80,135
1,85,129
1,64,063
1,64,293
1,57,471
1,45,418
1,40,553
1,38,913
1,36,351
1,32,792
1,40,368
1,40,705
1,33,923
1,33,076
1,40,792
1,35,098
1,37,631
1,34,658
1,28,122
1,31,303

Documents

1
Concall - Jun 2026 Jun 2026
2
Concall - Aug 2018 Aug 2018
3
Concall - Dec 2018 Dec 2018
4
Concall - Dec 2018 Dec 2018
5
Concall - Mar 2020 Mar 2020

Frequently Asked Questions about Escorts Kubota Ltd

What does Escorts Kubota Ltd do?
Escorts Ltd. is one of India’s leading engineering conglomerates engaged in the manufacturing of Agri-machinery, Construction & Material Handling Equipment and Railway Equipment. [1]
Where is Escorts Kubota Ltd (ESCORTS) listed?
Escorts Kubota Ltd is listed on the Indian stock exchanges. It is listed on NSE: ESCORTS and BSE: 500495. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Escorts Kubota Ltd belong to?
Escorts Kubota Ltd operates in the Industrials sector within the Agricultural, Commercial & Construction Vehicles industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Escorts Kubota Ltd?
Escorts Kubota Ltd has a market capitalisation of approximately ₹33474.94 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Escorts Kubota Ltd?
The Price-to-Earnings (PE) ratio of Escorts Kubota Ltd is 13.78. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Escorts Kubota Ltd?
Over the past 52 weeks, Escorts Kubota Ltd has traded between a low of ₹2,700 and a high of ₹4,180. This range helps investors understand the stock's price volatility and recent trading levels.
Does Escorts Kubota Ltd pay dividends?
Yes, Escorts Kubota Ltd has a dividend yield of 1.74%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Escorts Kubota Ltd?
Escorts Kubota Ltd has a Return on Equity (ROE) of 11.44%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Escorts Kubota Ltd on Tapetide?
On Tapetide, you can view Escorts Kubota Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Escorts Ltd. is one of India’s leading engineering conglomerates engaged in the manufacturing of Agri-machinery, Construction & Material Handling Equipment and Railway Equipment. [1]

Website escortsgroup.com
CEO Mr. Nikhil Nanda
Employees 4,622
Listed 1995-03-01
Face Value ₹ 10
Issued Size 11,18,77,754

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