The 35 reports from 11 analysts offering long term price targets
for Escorts Ltd. have an average target of 1391.73. The consensus estimate
represents an upside of 7.99%
from the last price of 1288.70.
Escorts reported robust earnings for 3QFY21 with revenue growing by 24% YoY to 20.4bn against 16.5bn in 3QFY20. EBITDA margins stood at 15.3% up 505 bps YoY. The upbeat margin performance was largely driven by significant savings in other expenses. Tractor EBIT margins improved 11 bps QoQ to best ever reading of 20.1% due to operating leverage benefits. During the call Management cautioned that its near-term margin performance was at risk due to the sharp rise in input costs...
Topline performance set to remain healthy over medium term Domestic tractor industry continues to outperform the rest of the automotive industry on the back of sustained supportive tailwinds in the form of record crop procurement, remunerative crop prices and government commitment towards augmenting farm incomes as well as rural infrastructure. The company expects healthy growth momentum witnessed, thus far, in FY21E to continue with upcoming Rabi season seen being as strong as the Kharif season gone by. Within tractors, construction demand is seen recording...
Escorts (ESC)'s 3QFY21 performance was in-line, with strong profitability and over 80% PAT growth. This was led by strong tractor volumes, a favorable mix, and cost-cutting initiatives. While the demand outlook...
Escorts in involved in production of agri-machinery, construction and material handling equipment and railway equipment from its plants at various locations. With a domestic market share of 11.6% at the end of last fiscal the company sells a wide range of tractors under the Farmtrac, Powertrac and Steeltrac brands. Its...
Domestic auto industry volumes have been on a steady mend in the months post lifting of lockdown restrictions. Manufacturing and distribution activities have been getting ramped up gradually since June 2020, in step with the rest of the economy. However, the impact of the pandemic on the supply chain continues to inhibit a complete return to production normalcy. Nevertheless, most automotive industry segments have reported successive improvement in offtake throughout June-November 2020 (Exhibit 1) on the back of (i) initial bounce provided by pent-up aspect,...
Escorts clocked a striking operational performance with revenue growing by 24% YoY to 16.5bn in 2QFY21 against 10.3bn in 2QFY20 while EBITDA margins stood at 18% up 870 bps YoY. The improvement in margins was attributable to tractor division which registered 20% EBIT margins for the quarter (up 973 bps YoY) on the back of improved product mix, operating leverage benefits and cost control...
Escorts clocked best ever operational performance with topline growing by 24% yoy to INR 1,654 cr in Q2FY21 and EBITDA margins clocking 18% up 870 bps yoy.
Blended margin trajectory at Escorts has undergone a drastic improvement (~6% in FY14 to ~11.7% as of FY20), backed by volume growth and product mix improvement. The company posted highest ever quarterly EBIT margin of 20% in tractors during Q2FY21, riding on sharp product mix improvement (>40 hp segment forming about two-third of sales vs. 45% last year, cost initiatives, operating leverage). Commodity cost pressures and normalisation of some stated benefits is seen shaving ~100-200 bps off the record print. However, the management expects ~17-18% EBIT margin...
Seminal year for industry provides interesting insights However, amid all the gloom, the engineering and production prowess of the industry (along with its value chain) shone brightly as it successfully completed the world's fastest switchover to Euro 6 equivalent emission norms i.e. BS-VI as per schedule. Much of the post festive period was focused on the transition, with the entire ecosystem estimated to have spent ~| 70,000 crore towards the technological leap. Covid-19 crisis struck India in the run up to April 2020, just as the changeover...
We revised our volume estimate and factor 13%YoY growth for H2FY21 and 20% growth from H1 to H2 owing to significant farm mechanization and higher government participation. Escorts Ltd (EL) is the third largest Agricultural tractor manufacturer in India. It has strong presence in the north and west market, with an overall market share of 11.6% as on FY20. Tractor demand was robust across the country. Price realisation was very good as farmer's cash flow has been very strong....
Q1FY21 revenue de-grew by 25%YoY largely on account of production lockdown in April and May. However for the June month, the volume growth was 21%YoY. EBITDA margin expanded by130bps due to softening metal price,...
Escorts Ltd. (EL) reported net sales of INR 10.6 bn in 1Q FY21 (~25.4% decline over INR 14.2 bn YoY) and a PAT of INR 922 mn (up 5.3% YoY). Escorts Farm Equipment (EFE) segment volume declined 13.8% while Escorts Construction Equipment (ECE) segment volume a declined 78.1%. EBITDAM (excluding other income) improved by 126 bps YoY (-282 bps QoQ) on the back of improving product mix, benign commodity prices and various cost cutting measures despite negative operating leverage and no price increases taken during the quarter. RM cost as % of sales decreased 185 bps while Operating & Manufacturing Expenses decreased 268 bps while employee expenses as % of sales increased 327 bps. Nationwide lockdown due to pandemic of Covid19 dragged volumes in both ECE and EFE divisions led de-growth....
We await detailed timelines for integration with Kubota's global operations and set a revised target price of Rs 1,200 at 16x Jun-22 EPS. We downgrade Escorts to ADD, after the stock has more than doubled from its COVID lows (+35% from our initiation). The fund infusion from Kubota has been completed, and demand has revived led by good monsoons/encouraging kharif sowing. However, valuations are now trading well over mean P/E levels and are factoring in the near-term positives, in our view.
