Escorts Kubota Ltd. share price target

Escorts Ltd (EL) is the third largest Agricultural tractor manufacturer in India. It has a strong presence in the north and west market, with an overall market share of 11% as on FY17. Q3FY18 revenue grew by 12%YoY led by 12%YoY volume growth in the tractor sales & 33%YoY from the construction business. EBITDA margins expanded 350bpsYoY driven by higher sales, price hike, cost control indicatives and better tax offset under GST. Government's focused approach to encourage farm mechanization and...

Escorts Ltd Q3FY18 results comment Revenue decreased by 0.55% to Rs. 1205.03 Cr in Q3FY18 when compared to the previous quarter. On the other hand, it rose by 12.17% when compared with Q3FY17.

Sector: Commercial Vehicles /Mid-Cap | Earnings Update 3QFY18 Background: Escorts Ltd (ESC) is one of India's prominent players in the Automotive / Tractor industry, with an overall market share of 10.4% (in 3QFY18) in the domestic tractor industry. ESC is also present in construction and material handling equipment, such as cranes, compactors and forklifts with 55% market share in material handling segment. Revenues share by segment in FY17: Agri machinery (80.0 %), Constriction equipment (14%), and Railway...

Escorts 2QFY18 results significantly outperformed estimates. Revenue grew by 26% YoY on the back of grow volume growth in the tractor segment. Reported EBITDA margin was 460bps higher YoY (adjusted for Rs260mn one-off payment, margins would increase further). Cost reduction measures, operating leverage and turnaround in construction equipment business helped margin expansion during the quarter. Tractor volume growth in 2HFY18 is expected to moderate as compared with 1HFY18. However other segments are expected to witness robust growth in revenues. We expect EBITDA margins in FY18/FY19 to witness gradual...

11.6% (est. of 9%) in 2QFY18, led by a decline of 80bp YoY in employee expenses (to 10.5% of net sales) and of 260bp in other expenses (to 11.1%). EBITDA rose 108% YoY to INR1,409m (est. of INR1,069m). Consequently, adj. PAT increased 104.8% YoY to INR822m (est. of INR657m). Growth captured in 1HFY18, 2H to remain subdued: The domestic tractor industry witnessed growth of 21.3% YoY in 1HFY18, and is expected to grow ~12% on a full-year basis, leaving no room for significant growth in 2HFY18. ESC too witnessed 31.5% YoY growth in tractor volumes in 2QFY18 due to...

ICICI Securities Ltd | Retail Equity Research Escorts exhibited strong volume growth of 29.5% YoY (4247 units) in February. This growth comes on the back of 16.3% YoY growth in January & 27.4% YoY growth in Q3FY17. On a YTD basis (April-February), Escorts' domestic tractor volumes have grown at 23% YoY to 51581 units against industry growth of 18% YoY. The management expects to end FY17 at a growth rate of ~23% YoY. In Q1FY8E, the company expects growth to taper down to 10-15% due to base effect....

Background: Escorts Ltd (ESC) is one of India's prominent players in the Automotive / Tractor industry, with an overall market share of ~11% in the domestic tractor industry. ESC is also present in construction and material handling equipment, such as cranes, compactors and forklifts with 55% market share in material handling segment. Revenues share by segment in 3QFY17: Agri machinery (80.2%), Constriction equipment (13.7%), Railway...

ICICI Securities Ltd | Retail Equity Research Escorts' Q3FY17 results were above our estimates on topline, margin front but below estimates on bottomline front. Revenues were at | 1093 crore, up 22.6% YoY, 2.2% QoQ, marginally above our estimate of | 1080 crore. Revenue from agri machinery was at | 889 crore (estimate | 889 crore), railway equipment- | 58 crore (estimate: | 58 crore) & construction equipment | 152 crore (estimate | 134 crore) Tractor volumes grew 27.4% YoY to 16963 units while construction...

Background: Escorts Ltd (ESC) is one of India's prominent players in the Automotive / Tractor industry, with an overall market share of ~11% in the domestic tractor industry. ESC is also present in construction and material handling equipment, such as cranes, compactors and forklifts with 55% market share in material handling segment. Revenues share by segment in 2QFY17: Agri machinery (79.4%), Constriction equipment (13.4%), Railway...