Buy Escorts Kubota, target price Rs 2980: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Escorts Kubota with a target price of Rs 2980. The current market price of Escorts Kubota is Rs 2821.3. Motilal Oswal Financial Services recommended to keep stop loss at Rs 2787.

Escorts Kubota, incorporated in the year 1944, is a Mid Cap company (having a market cap of Rs 31504.16 Crore) operating in Auto sector.

Escorts Kubota key Products/Revenue Segments include Tractors Agricultural, Other Operating Revenue, Scrap, Sale of services and Export Incentives for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 2449.52 Crore, up 6.96 % from last quarter Total Income of Rs 2290.16 Crore and up 18.47 % from last year same quarter Total Income of Rs 2067.58 Crore. Company has reported net profit after tax of Rs 285.22 Crore in latest quarter.

Investment Rationale
Breakout on daily frame and has come out of long consolidation followed by price volume surge.

Promoter/FII Holdings
Promoters held 67.64 per cent stake in the company as of 30-Jun-2023, while FIIs owned 5.61 per cent, DIIs 9.85 per cent.