Escorts Kubota Ltd.
NSE: ESCORTSEscorts Kubota Ltd.: A 30-second snapshot
Escorts Kubota (₹2,999) is an agricultural-equipment and construction-machinery company trading 27.89% below its 52-week high, below both the 50-DMA (₹3,148) and 200-DMA (₹3,492). The trailing PE of 24.2x is the lowest among its 6 Infrastructure-sector peers, with a quality score of 60 ranking first in the group, though ROE of 12.02% has exceeded 15% in only 1 of the past 5 tracked years.
P/E
24.2
Forward P/E
20.6
ROE
+12.0%
Debt / Equity
1.31
Profit Margin
+20.8%
Div. Yield
+1.5%
5Y ROE > 15%
1/5
5Y FCF > 0
4/5
Quality
61/100
News
8 headlines · 5 positive · 0 negative
Escorts Kubota April Auto Sales: Total tractor sales rise 24% to 10,287 units; Exports decline 21% - CNBC TV18
CNBC TV18
After Its Strongest Year on Record, Escorts Kubota Steers Into a Tighter FY27 - Autocar Professional
Autocar Professional
Escorts Kubota expands Digitrac into a full series, launches three new tractor models - Krishi Jagran
Krishi Jagran
Escorts Kubota Expands Digitrac into Full Series - Machine Maker
Machine Maker
Escorts Kubota Limited Launches Three New Tractor Models Under Digitrac Series in India - Global Agriculture
Global Agriculture
Recent context
- ·Autocar Professional noted that FY27 guidance is tighter following what it described as the company's strongest year on record — signalling management expects a more challenging operating environment ahead.
- ·April 2026 export tractor volumes fell 21% YoY to an undisclosed level even as domestic volumes reached 10,287 units (up 24%), indicating a bifurcated demand picture across geographies.
- ·Mean analyst rating of 3.0 across 17 analysts (1–5 scale, lower = more constructive) — placing consensus at the midpoint of the scale, reflecting a spread of views across the coverage universe.
Strengths
- +Lowest PE (24.2x) among 6 Infrastructure peers that include BEL (52x), LT (33x), ABB (87x), CG Power (108x), and Cummins (67x), reflecting a relative valuation discount within the sector.
- +Profit margin of 20.75% and quality score of 60 rank first among peers with available data, suggesting resilient operating-level profitability despite weak earnings-growth compounding.
- +FCF was positive in 4 of 5 tracked years, indicating the business has generally converted earnings to cash, with a consistency score of 56.
- +Domestic tractor volume expanded 24% YoY in April 2026, and the company launched three new Digitrac-series models — indicating active product-line investment and near-term volume momentum in the home market.
Weaknesses
- −ROE of 12.02% has been above 15% in only 1 of 5 tracked years, placing ESCORTS near the bottom of the peer group on capital-efficiency persistence alongside a consistency score of 56.
- −5-year earnings growth of 0.6% is near-flat against 5-year revenue growth of 21.4% — a divergence that implies sustained margin compression or rising cost base over the period.
- −Debt trend is rising; D/E of 1.309 is elevated relative to a business where earnings growth has stalled, raising questions about leverage sustainability.
- −The stock is down 21.17% over 3 months, 11.21% over 12 months, and sits 27.89% below its 52-week high while trading below both key moving averages — the price trend has been consistently negative across all measured horizons.
Open questions
- ?Does the 21.4% 5-year revenue CAGR alongside near-zero earnings growth reflect a structural cost shift (e.g., Kubota integration, R&D ramp) that could normalise, or a permanent margin reset?
- ?How does the 21% YoY export volume decline in April 2026 compare to the broader global tractor export trend, and what share of revenue does exports represent?
- ?At a D/E of 1.309 with a rising debt trend, how does the company's interest coverage ratio trend against its operating cash-flow generation?
- ?The forward PE of 20.6x implies the market expects earnings improvement — what near-term catalysts (new model launches, monsoon-linked rural demand, pricing) could drive that recovery, and what would invalidate the earnings recovery thesis?
Peer comparison: Infrastructure
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ESCORTS | Escorts Kubota Ltd.You're viewing | 24.2 | +12.0% | 60 |
| Industry avg | across 5 peers | 69.5 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.0 | — | 57 |
| ABB | ABB India Ltd. | 87.1 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹2,999.20
SMA 50
₹3,147.98
SMA 200
₹3,492.47
RSI (14)
39.5 (neutral)
From 52w high
-27.9%
1Y return
-11.2%
3M return
-21.2%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumPrice is below both the 50-DMA (₹3,147.98) and 200-DMA (₹3,492.47), down 21.17% over 3 months and 11.21% over 12 months, with a 27.89% drawdown from the 52-week high — the stock has remained in a sustained downtrend.
- mediumROE of 12.02% sits in the lowest tier among peers with available data; only 1 of 5 tracked years saw ROE exceed 15%, and the 5-year earnings growth of 0.6% sharply lags 5-year revenue growth of 21.4%, indicating significant margin compression or capital inefficiency over the period.
- mediumDebt trend is rising; D/E of 1.309 is above the 0 baseline for an agricultural-equipment company, and with earnings growth near zero over 5 years, the rising leverage trajectory warrants close attention.
- lowPeer 1-year price-change data is unavailable for all 5 Infrastructure peers, limiting relative price-performance benchmarking; ROE is also missing for 3 of 5 peers, constraining quality-ranking reliability.
- lowExport tractor volumes declined 21% YoY in April 2026 even as domestic volumes rose 24%, signalling a sharp contraction in the international revenue mix.
Cross-section contradictions
- Domestic tractor sales rose 24% YoY in April 2026 and the company expanded its Digitrac product line with three new models, yet the stock is down 21.17% over 3 months and 27.89% from its 52-week high — operational volume momentum and price action diverge materially.
- 5-year revenue growth of 21.4% is robust, but 5-year earnings growth of 0.6% implies near-total margin erosion over the same period — top-line expansion has not translated to bottom-line compounding.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days