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Hold Escorts Kubota; target of Rs 1650: ICICI Direct

ICICI Direct recommended hold rating on Escorts Kubota with a target price of Rs 1650 in its research report dated August 02, 2022.

August 04, 2022 / 05:15 PM IST
 
 
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ICICI Direct's research report on Escorts Kubota


The company is a prominent tractor maker domestically (10.3% FY22 market share). It also serves domestic construction equipment, railways space. FY22 sales mix – tractors 77%, construction equipment 14%, railways 9% • Past five year CAGR: 24.1%, 35.6% in EBITDA, PAT; cash positive b/s. We retain HOLD rating on Escorts amid muted tractor growth prospects over FY22-24E & decline in market share as well as pressure on margins.


Outlook


We value Escorts Kubota Ltd at SOTP-based target price of Rs 1,650 (20x P/E on core FY24E EPS, 20% discount on treasury shares).


For all recommendations report, click here

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Escorts Kubota - 020822 - ic

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first published: Aug 4, 2022 05:15 pm
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