Sell Escorts Kubota, target price Rs 1783: Geojit

Geojit has sell call on Escorts Kubota Ltd. with a target price of Rs 1783. The current market price of Escorts Kubota Ltd. is Rs 2015.2.

Escorts Kubota Ltd., incorporated in the year 1944, is a Mid Cap company (having a market cap of Rs 26591.31 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
On a 1yr. Fwd, the stock is trading at its all time high of 26x. However, considering the margin pressure and lower volume for H2, the brokerage downgrades estimates and recommends Sell rating at CMP.

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.