Buy Escorts Kubota; target of Rs 2588: StoxBox

StoxBox's report on Escorts Kubota

Escorts Kubota Ltd. (EKL) is one of the leading engineering conglomerates in India involved in the manufacturing of farming and construction equipment. The company has in-house research and development centre and collaborations with global technology leaders. They have three business divisions consisting of agri-machinery which involves tractors, engines, spare parts and lubes. The other is the construction equipment division which manufactures material handling, road compaction and earth-moving equipment. The third division is the railway equipment division which manufactures brake systems, couplers, suspension systems, friction & rubber products. All the above equipment is manufactured at six plants located in the state of Haryana.

Outlook

We reiterate a buy between CMP-2180 for a 17% upside for the target of 2588 and stop loss at 2070.