Escorts Kubota Ltd. share price target

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. ESC has also forayed into Auto Ancillary and Railway division which are still at a nascent stage. Key...

Escorts' delivered strong Q1FY16 performance, as its profitability was way ahead of our estimate on account of better operating performance. Its Revenues/EBIDTA/PAT grew -13%/1%/8% YoY and 20%/161%/192% QoQ to Rs9.8bn/Rs575mn/Rs368mn as against our estimate of Rs9.9bn/Rs338 mn/Rs108mn in Q1FY16. Its tractor volume declined 17%YoY (up 35% QoQ), while construction equipments' volume fell 29% YoY and 34% QoQ in the quarter.

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. ESC has also forayed into Auto Ancillary and Railway division which are still at a nascent stage. Key...

Escorts' Q4FY15 performance was broadly in line with our estimate on operational front, while net profit was ahead of estimates on account of higher non operating income. Its Revenues/EBIDTA/PAT declined 17%/52%/54% YoY and 22%/55%/64% QoQ to Rs8.2bn/Rs220mn/Rs 126mn as against our estimate of Rs8.3bn/Rs214 mn/Rs32mn in Q4FY15.

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. ESC has also forayed into Auto Ancillary and Railway division which are still at a nascent stage. Key...

Escorts' quarterly performance on operational front came above ours as well as street expectations in Q3FY15. It reported net profit of Rs 357 mn, 42% above our estimates, mainly due to significant decline in losses from other business segments. Company's tractor volume declined 17% YoY and 11% QoQ to 15,881 units, while its construction equipment volume grew 8.7% YoY and 11.4% QoQ to 801 units in Q3FY15.

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. ESC has also forayed into Auto Ancillary and Railway division which are still at a nascent stage. Key...

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. ESC has also forayed into Auto Ancillary and Railway division which are still at a nascent stage. Key...

Healthy growth in Tractor sales, Realizations dips 1.1% Escorts sold 19518 tractors in Q3SY13 registering a growth of 21.4% YoY on the back of well distributed,...

Escorts has moved up significantly since our initial Stock Idea on July 5 at Rs 74.4 and reached the target of Rs 90. Now, post the Q3FY13 results we see further upside in the stock and maintain our BUY rating and raise our target to Rs 116. Stellar Performance in Q3FY13 (Sep ending) Escorts reported splendid results for Q3FY13. Net sales increased by 16% yoy to Rs 1176 cr driven by strong growth numbers from the Agri Machinery segment. EBITDA went up by 71.6% to Rs 92.7 cr while margin increased to 7.9%, the highest in the past 12 quarters, growing by 256 bps yoy. Price hike in the months of Feb and May, change in product mix and better cost control led to...