ScoreWhy is Escorts Kubota Ltd ?
1
The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 9.92% and Operating profit at 2.46% over the last 5 years
3
Positive results in Jun 26
- OPERATING CF(Y) Highest at Rs 1,381.16 Cr
- PBT LESS OI(Q) At Rs 284.30 cr has Grown at 488.5% (vs previous 4Q average)
- NET SALES(Latest six months) At Rs 6,175.71 cr has Grown at 24.89%
4
With ROE of 12.9, it has a Fair valuation with a 2.8 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.24%, its profits have fallen by -1.5%
5
Majority shareholders : Promoters
6
Below par performance in long term as well as near term
- Along with generating -8.24% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Escorts Kubota should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Escorts Kubota for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Escorts Kubota
-8.24%
-0.26
31.53%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.92%
EBIT Growth (5y)
2.46%
EBIT to Interest (avg)
46.75
Debt to EBITDA (avg)
0.10
Net Debt to Equity (avg)
-0.55
Sales to Capital Employed (avg)
1.03
Tax Ratio
23.72%
Dividend Payout Ratio
23.83%
Pledged Shares
0
Institutional Holding
17.01%
ROCE (avg)
19.04%
ROE (avg)
10.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
24
Price to Book Value
2.76
EV to EBIT
21.55
EV to EBITDA
17.88
EV to Capital Employed
4.90
EV to Sales
2.23
PEG Ratio
NA
Dividend Yield
1.67%
ROCE (Latest)
22.23%
ROE (Latest)
12.95%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CF(Y)
Highest at Rs 1,381.16 Cr
PBT LESS OI(Q)
At Rs 284.30 cr has Grown at 488.5% (vs previous 4Q average
NET SALES(Latest six months)
At Rs 6,175.71 cr has Grown at 24.89%
DEBTORS TURNOVER RATIO(HY)
Highest at 9.60 times
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 42.23 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Escorts Kubota
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 284.30 cr has Grown at 488.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 48.31 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 1,381.16 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Latest six months
At Rs 6,175.71 cr has Grown at 24.89%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 9.60 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Escorts Kubota
Non Operating Income - Quarterly
is 42.23 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 207.84 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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