Buy Escorts Kubota, target price Rs 2390: Chandan Taparia

Chandan Taparia of Motilal Oswal has buy call on Escorts Kubota with a target price of Rs 2390. The current market price of Escorts Kubota Ltd. is Rs 2288.35.

Escorts Kubota Ltd., incorporated in the year 1944, is a Mid Cap company (having a market cap of Rs 30192.63 Crore) operating in Auto sector.
Escorts Kubota Ltd. key Products/Revenue Segments include Tractors Agricultural, Other Operating Revenue, Scrap, Sale of services and Export Incentives for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 1968.85 Crore, down -4.78 % from last quarter Total Income of Rs 2067.58 Crore and up 13.19 % from last year same quarter Total Income of Rs 1739.36 Crore. Company reported net profit after tax of Rs 103.55 Crore in latest quarter.

Investment Rationale
Price-vol breakout on weekly frame, pole & flag pattern breakout on daily frame; follow-up buying seen

Promoter/FII Holdings
Promoters held 72.9 per cent stake in the company as of 30-Sep-2022, while FIIs owned 4.24 per cent, DIIs 7.65 per cent.