Escorts Kubota zooms 5% to 52-week high after DAM Capital raises price target by 62%

Volumes in the counter also shot up as 14 lakh shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of four lakh shares.

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26 Aug, 2025 12:21

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Shares of Escorts Kubota surged over 5 percent to a 52-week high of Rs 3,372.95 on October 10 after brokerage firm DAM Capital rolled out a bullish outlook for the company, raised its price target for the stock by 62 percent to Rs 5,100, and retained the 'buy' call.

The brokerage believes valuations for Escorts Kubota would expand closer to that of MNCs, at around 30 times their FY26 expected earnings. DAM Capital also attributed its bullishness on the company to its expectations of a healthy earnings CAGR, higher return ratios, and a huge potential of expanding global footprint.

At 2.38pm, shares of Escorts Kubota traded 5.3 percent up at Rs 3,371.05 on the NSE.

Volumes in the counter also shot up as 14 lakh shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of 4 lakh shares.

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Following the successful acquisition of a controlling stake in Escorts by Kubota, the company has also chalked out plans to leverage their synergies to fuel growth.

The company aims to expand its market share through synergies and strength of both Escorts and Kubota in their respective markets. The management also plans to capitalise on Kubota's global network to fuel health export growth.

In terms of revenue, the maangement plans to boost it through revenue from construction equipment, global material sourcing, and agri implements.

Factoring in the company's plans to scale in the coming years, DAM Capital predicts a revenue CAGR (compound annual growth rate) at 17 percent, EBITDA at 37 percent and net profit at 41 percent for FY23-FY26.

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