Escorts Kubota logo

Escorts Kubota

ESCORTS NSE

Key Fundamentals

SmallcapTractorsAutomobiles
Market Cap
₹32,645 Cr
Volatility
Moderate
P/E Ratio
23.46
EBITDA
₹2,063 Cr
Return on Equity
11.05%
Debt to Equity
0.01
Book Value
₹1,107.32
EPS
₹95.23
52W High
₹3,987.8
52W Low
₹2,700

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

3
  • Company is almost debt free.
  • Company has delivered good profit growth of 19.6% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 22.4%

Weaknesses

4
  • Stock is trading at 2.62 times its book value
  • The company has delivered a poor sales growth of 10.5% over past five years.
  • Company has a low return on equity of 13.9% over last 3 years.
  • Earnings include an other income of Rs.566 Cr.

Growth Rate

Revenue Growth
13.09% higher than 3Y
Net Income Growth
21.56% lower than 3Y
Cash Flow Change
37.68% lower than 3Y
ROE
1.84% lower than 3Y
ROCE
11.88% higher than 3Y
EBITDA Margin (Avg.)
12.18% lower than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2d ago
AI opinion · based on fundamentals
Risk medium

Escorts Kubota Ltd is a nearly debt-free automobiles company with a market cap of ₹32,645 Cr, trading at a P/E of 23.9x. The company has delivered strong TTM profit growth of 21% and a 10-year compounded profit CAGR of 37%, though sales growth has been more modest at 10% over five years and the stock has declined 20% over the past year.

Bull Case 8
  • The company is virtually debt-free, providing significant financial flexibility and resilience during economic downturns.
  • TTM compounded sales growth stands at 20%, indicating a recent acceleration in top-line momentum compared to the 5-year CAGR of 10%.
  • Compounded profit growth of 21% TTM and 37% over 10 years demonstrates sustained earnings expansion well above sales growth, reflecting improving margins.
  • Last year ROE improved to 19%, meaningfully above the 5-year average of 13% and 10-year average of 14%, suggesting better capital efficiency.
  • Healthy dividend payout ratio of 22.4% with a current dividend yield of 1.72%, providing tangible cash returns to shareholders.
  • Kubota Corporation partnership (reflected in the company name change) brings global technology, R&D capabilities, and distribution synergies to the Indian tractor and farm equipment business.
  • 5-year profit CAGR of 19.6% significantly outpaces the 5-year sales CAGR of 10.5%, indicating operating leverage and margin expansion in the business.
  • 10-year stock CAGR of 24% reflects long-term wealth creation despite recent short-term weakness.
Bear Case 8
  • Stock has declined 20% over the past 1 year, significantly underperforming the broader market and signaling weakening investor sentiment.
  • 5-year compounded sales growth of only 10.5% is modest for a company in the automobiles/farm equipment sector, pointing to limited top-line scalability.
  • 3-year average ROE of 13.9% is relatively low for a capital-efficient, debt-free business, suggesting suboptimal utilization of shareholder equity.
  • Stock trades at 2.68x book value, which is elevated for a company with a 3-year ROE of only 13.9%, implying the valuation may already price in significant future improvement.
  • Earnings quality is a concern as other income of ₹566 Cr forms a material portion of profits, meaning core operating earnings may be lower than headline numbers suggest.
  • 3-year stock CAGR of -2% indicates the stock has destroyed value for medium-term investors even as profits grew at 47% CAGR over the same period, reflecting a significant P/E de-rating.
  • P/E of 23.9x is not inexpensive for a company delivering only 10.5% sales growth over five years, leaving limited margin of safety if growth disappoints.
  • The wide gap between profit growth (47% 3-year CAGR) and sales growth (11% 3-year CAGR) raises questions about the sustainability of margin expansion going forward.

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 2h ago
Headwinds 2
  • ₹2.44 Cr GST demand order Aug 22

    Chennai GST authorities confirmed a tax demand of ₹2.44 crore, interest of ₹1.71 crore, and penalty of ₹24.44 lakh for FY23 input tax credit issues.

  • High base and cost pressures Sep 1

    Company flagged that a high base effect, rising cost pressures, geopolitical uncertainties, and commodity price volatility could moderate industry growth in the coming period.

Positives 3
  • Tractor sales up 19% in Aug Sep 1

    Agri machinery business sold 10,072 tractors in August 2026, up 19.1% YoY from 8,456 units. Domestic sales rose 20.5% to 9,523 units.

  • Construction equipment up 16% Sep 1

    Construction equipment business sold 435 machines in August 2026, up 16% from 375 machines in August 2025.

  • ₹2,000 Cr UP plant groundbreaking Aug 19

    Commenced construction of a 154-acre greenfield manufacturing facility in Uttar Pradesh with indicative investment of over ₹2,000 crore to expand tractor and construction equipment capacity.

Neutral 2
  • Multiple investor meetings scheduled Sep 10

    Scheduled meetings with Arika Capital, Enam Asset Management, Baillie Gifford, East Bridge Capital, and Rare Enterprises across September 3-17, 2026.

  • Analyst meetings in late August Aug 21

    Hosted one-on-one meetings with Nuvama, HSBC Securities, and Valuequest Investment Advisors between August 21-27, 2026 under SEBI regulations.

TL;DR: Escorts Kubota is delivering strong volume growth with August tractor sales up 19% YoY and construction equipment up 16%, supported by healthy monsoon and rural sentiment. The ₹2,000 crore UP greenfield plant signals confidence in long-term capacity expansion. Risks are manageable — a minor ₹2.44 Cr GST demand and company-acknowledged headwinds from high base effects and cost pressures. The near-term trend remains positive, with festive season demand and Kharif crop outcomes as key catalysts to watch.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
2,355
2,478
2,728
2,301
2,574
2,277
2,948
2,445
2,500
2,792
3,280
2,968
3,208
Expenses
2,024
2,214
2,402
2,015
2,259
2,047
2,616
2,158
2,179
2,432
2,846
2,588
2,853
Operating Profit
331
264
325
285
315
230
332
287
321
360
435
381
354
OPM %
14%
11%
12%
12%
12%
10%
11%
12%
13%
13%
13%
13%
11%
Other Income
99
94
129
133
140
140
143
178
1,260
134
102
122
208
Interest
3
9
11
12
11
10
4
5
4
5
6
6
5
Depreciation
40
58
57
59
59
61
62
62
60
62
64
69
65
PBT
386
290
386
347
385
299
410
398
1,518
427
466
428
492
Tax %
25%
27%
23%
22%
22%
-8%
22%
20%
8%
26%
23%
25%
22%
Net Profit
290
211
299
270
302
324
321
318
1,397
318
358
321
386
EPS in Rs
26.24
19.05
27.01
24.43
27.3
28.98
28.66
28.46
125
28.44
32.03
28.65
34.5
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
4,113
3,432
4,145
5,059
6,262
5,810
7,014
7,283
8,429
9,804
10,244
11,540
12,248
Expenses
4,039
3,271
3,878
4,506
5,539
5,149
5,888
6,317
7,659
8,673
9,080
10,044
10,718
Operating Profit
73
161
268
553
723
661
1,126
966
770
1,130
1,164
1,496
1,529
OPM %
1.8%
4.7%
6%
11%
12%
11%
16%
13%
9%
12%
11%
13%
12%
Other Income
124
31
36
58
99
88
160
174
228
525
601
1,618
566
Interest
58
51
32
29
20
17
13
15
13
42
29
20
22
Depreciation
69
58
63
73
87
107
118
132
150
224
244
255
260
PBT
70
82
208
509
715
625
1,155
993
835
1,390
1,492
2,838
1,813
Tax %
-8%
15%
37%
32%
33%
25%
25%
26%
24%
23%
15%
16%
—
Net Profit
76
70
131
347
478
472
872
736
637
1,077
1,265
2,394
1,383
EPS in Rs
6.23
5.76
10.71
28.31
39.07
38.53
64.63
55.82
48.26
97.44
113
214
124
Div. Payout %
19%
21%
14%
7%
6%
6%
12%
13%
14%
18%
25%
24%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
119
123
123
123
123
123
135
132
132
110
112
112
Reserves
1,711
1,344
1,498
2,093
2,551
2,995
4,891
7,468
8,055
9,278
10,255
12,261
Borrowings
484
368
265
51
281
48
61
52
57
448
105
162
Other Liabilities
1,235
1,134
1,313
1,706
1,753
1,849
1,791
1,456
1,841
2,563
2,623
3,257
Total Liabilities
3,550
2,968
3,199
3,973
4,707
5,014
6,878
9,108
10,085
12,400
13,095
15,792
Fixed Assets
1,596
1,539
1,581
1,588
1,647
1,702
1,796
1,841
1,891
2,165
2,053
2,146
CWIP
56
58
35
66
80
125
65
88
114
161
153
200
Investments
373
64
212
549
491
797
1,938
4,836
4,767
5,019
5,605
8,281
Other Assets
1,526
1,307
1,371
1,770
2,489
2,390
3,079
2,343
3,313
5,054
5,284
5,165
Total Assets
3,550
2,968
3,199
3,973
4,707
5,014
6,878
9,108
10,085
12,400
13,095
15,792
Figures in ₹ Crores

Cash Flow

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-10
212
304
460
-234
797
1,129
32
224
789
1,003
1,381
Investing
17
-44
-155
-374
-18
-421
-2,195
-1,856
-62
-759
-194
-1,127
Financing
1
-191
-113
-1
191
-300
1,003
1,810
-71
25
-702
-420
Net Cash Flow
8
-23
36
85
-61
76
-63
-14
91
54
107
-166
Free Cash Flow
-65
166
238
354
-387
607
1,013
-120
11
521
757
1,069
CFO/OP
15
127
130
102
-2
147
123
30
53
91
117
130
Figures in ₹ Crores

Ratios

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
37
40
40
43
54
46
34
40
51
53
47
38
Inventory Days
64
70
58
61
73
84
56
62
73
90
70
67
Days Payable
92
115
117
132
107
123
94
66
75
87
82
100
Cash Conversion Cycle
9
-5
-19
-29
21
7
-3
36
49
57
35
5
Working Capital Days
-17
-39
-39
-26
12
9
-4
30
39
31
25
1
ROCE %
7%
8%
13%
26%
28%
21%
28%
16%
11%
14%
11%
14%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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Shareholding Pattern

Others4.04%Promot.68.04%FIIs6.36%DIIs10.65%Public10.90%As ofJun 2026

Documents

Frequently Asked Questions about Escorts Kubota

What does Escorts Kubota Ltd do?
Escorts Ltd. is one of India’s leading engineering conglomerates engaged in the manufacturing of Agri-machinery, Construction & Material Handling Equipment and Railway Equipment. [1]
Where is Escorts Kubota Ltd (ESCORTS) listed?
Escorts Kubota Ltd trades as ESCORTS on the NSE and under code 500495 on the BSE.
Which sector does Escorts Kubota Ltd belong to?
Escorts Kubota Ltd is classified under the Automobiles sector, in the Tractors industry.
What is the market capitalisation of Escorts Kubota Ltd?
Escorts Kubota Ltd has a market capitalisation of ₹32,645 Cr, which places it in the Large Cap band.
What is the PE ratio of Escorts Kubota Ltd?
Escorts Kubota Ltd trades at a PE ratio of 23.46, on earnings per share of ₹95.23, against a book value of ₹1,107.32 per share.
What is the 52-week high and low of Escorts Kubota Ltd?
Over the last 52 weeks Escorts Kubota Ltd has traded between ₹2,700 and ₹3,987.8.
Does Escorts Kubota Ltd pay dividends?
Escorts Kubota Ltd has a dividend yield of 1.72%.
What is the Return on Equity (ROE) of Escorts Kubota Ltd?
Escorts Kubota Ltd reported a return on equity of 11.05%. Its debt-to-equity ratio is 0.01.

Company Information

Escorts Ltd. is one of India’s leading engineering conglomerates engaged in the manufacturing of Agri-machinery, Construction & Material Handling Equipment and Railway Equipment. [1]

Website escortsgroup.com
CEO Mr. Nikhil Nanda
Employees 4,622
Listed 1995-03-01
Face Value ₹ 10
Issued Size 11,18,77,754

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