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Buy Escorts Kubota; target of Rs 3900: Anand Rathi

Anand Rathi is bullish on Escorts Kubota has recommended buy rating on the stock with a target price of Rs 3900 in its research report dated February 11, 2025.

February 12, 2025 / 13:30 IST
Buy
     
     
    26 Aug, 2025 12:21
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    Anand Rathi's research report on Escorts Kubota

    Escorts’ Q3 PBT (incl. discontinued operations) grew 7% y/y to Rs4.2bn, below ARe of Rs4.4bn mainly due to less-than-expected agri machinery margins. We are enthused about the company as we believe FY25 would bring a ramp-up in its Vision 2028 execution and a turnaround in tractors. Its merger with Kubota, strong tractor cycle, new products & platforms, and recovery in exports will be positive for the company. Key Vision 2028 strategies: new platforms for domestic/exports, component/R&D services exports, operating captive finance and ramping up plans for other segments. We expect healthy (incl. JV, Railways divestment), 14%/22% revenue/EBIT CAGRs over FY25-27.

    Outlook

    The stock trades at 31x/24x FY26e/FY27e core P/E. We retain a Buy rating, with a lower Rs3,900 TP (earlier Rs4,300), 30x FY27e core EPS and Rs603/sh cash.

    For all recommendations report, click here

    Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Escorts Kubota - 12022025 - anand

    Broker Research
    first published: Feb 12, 2025 01:30 pm

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