Escorts Kubota Ltd - Stock Valuation and Financial Performance

BSE: 500495 | NSE: ESCORTS | Automobiles-Tractors | Mid Cap

Escorts Kubota Share Price

3,905.10 -82.55 -2.07%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Escorts Kubota

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Escorts Kubota stock performance -

mw4me loader
P/E Ratio (CD):
42.00
Market Cap:
44,062.8 Cr.
52-wk low:
2,290.3
52-wk high:
4,410.4

Is Escorts Kubota Ltd an attractive stock to invest in?

1. Is Escorts Kubota Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Escorts Kubota Ltd is a average quality company.

2. Is Escorts Kubota Ltd undervalued or overvalued?

The key valuation ratios of Escorts Kubota Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Escorts Kubota Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Escorts Kubota Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Escorts Kubota:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Escorts Kubota Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 6%6.2%10.9%17.4%18.5%16.1%21.5%11.8%8.6%12.1%-
Value Creation
Index
-0.6-0.6-0.20.30.40.20.60.1-0.20.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,1133,4324,1455,0596,2625,8107,0147,2838,4298,8508,850
Sales YoY Gr.--16.6%20.8%22.1%23.8%-7.2%20.7%3.8%15.7%5%-
Adj EPS 8.37.714.727.838.33964.455.65194.394.9
YoY Gr.--7.5%90.8%89.3%37.9%1.8%65.4%-13.8%-8.3%85%-
BVPS (₹) 150.4119.6132.2180.7217.8253.7371.4574.9619.6829.4829.4
Adj Net
Profit
99.194.21803404694788697336721,0421,049
Cash Flow from Ops. -9.8212304460-2347971,12932.32241,032-
Debt/CF from Ops. -49.41.70.90.1-1.200000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.9%7.2%8.1%5%
Adj EPS 31%19.8%13.5%85%
BVPS20.9%30.7%30.7%33.9%
Share Price 41.9% 48.5% 48.2% 68.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
5.45.711.717.819.216.521.311.68.51211.5
Op. Profit
Mgn %
3.92.96.810.611.311.41613.78.613.213.2
Net Profit
Mgn %
2.42.74.36.77.58.212.410.1811.811.9
Debt to
Equity
0.30.30.200.1000000
Working Cap
Days
10511188901071359391102112122
Cash Conv.
Cycle
2120901726013333682

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 11.40%

Net Profit is growing at healthy rate in last 3 years 13.53%

Sales growth has been subdued in last 3 years 8.05%

Sales growth is not so good in last 4 quarters at 5.39%

Latest Financials - Escorts Kubota Ltd.

Standalone Consolidated
TTM EPS (₹) 93.9 94.9
TTM Sales (₹ Cr.) 8,777 8,850
BVPS (₹.) 832.8 829.4
Reserves (₹ Cr.) 9,091 9,054
P/BV 4.79 4.81
PE 42.48 42.00
From the Market
52 Week Low / High (₹) 2290.25 / 4410.40
All Time Low / High (₹) 30.65 / 4410.40
Market Cap (₹ Cr.) 44,063
Equity (₹ Cr.) 110.5
Face Value (₹) 10
Industry PE 41.1

Management X-Ray of Escorts Kubota:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Escorts Kubota

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales4,1133,4324,1455,0596,2625,8107,0147,2838,4298,850
Operating Expenses 3,9553,3323,8644,5255,5575,1485,8926,2887,7017,684
Manufacturing Costs166163192273334305311332405446
Material Costs2,9262,3842,8313,4074,2773,8414,6454,9796,1236,087
Employee Cost 447412451442485521547542607649
Other Costs 415373390402460481389435566503
Operating Profit 1581002815347056621,1239957281,165
Operating Profit Margin (%) 3.8%2.9%6.8%10.6%11.3%11.4%16.0%13.7%8.6%13.2%
Other Income 70122758511298164174331400
Interest 58513229201713151314
Depreciation 6958637387107118132150167
Exceptional Items -31-12-11-76-900-530
Profit Before Tax 70992495097146251,1559938351,401
Tax -61277162237154283257198352
Profit After Tax 76871713474774728727366371,049
PAT Margin (%) 1.8%2.5%4.1%6.9%7.6%8.1%12.4%10.1%7.6%11.9%
Adjusted EPS (₹)6.45.810.728.339.138.564.655.848.394.9
Dividend Payout Ratio (%)19%21%14%7%6%6%12%13%15%19%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1,8311,4661,6212,2152,6693,1105,0077,5868,1749,164
Share Capital 119123123123123123135132132111
Reserves 1,7111,3441,4982,0932,5472,9884,8727,4548,0429,054
Minority Interest1522-065-1-4-4-4
Debt41131521815273192004
Long Term Debt107905915432000
Short Term Debt3052261590269170004
Trade Payables7387519101,2341,2491,2931,1958941,2611,208
Others Liabilities 439363397509510586675632654893
Total Liabilities 3,4352,8973,1483,9734,7075,0146,8789,10810,08511,266

Fixed Assets

Gross Block2,4432,4182,4282,4732,5982,7402,8652,9973,1733,267
Accumulated Depreciation8478798719089741,0611,1391,2391,3611,450
Net Fixed Assets1,5961,5391,5581,5651,6241,6791,7261,7581,8111,816
CWIP 56583566801256588114152
Investments 373402125494917971,9384,8364,7675,220
Inventories4534334505668578837188471,2181,218
Trade Receivables4143754565929317326587931,1801,173
Cash Equivalents 2512532443172433251,3222724721,179
Others Assets292199192318480472452515524507
Total Assets 3,4352,8973,1483,9734,7075,0146,8789,10810,08511,266

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -10212304460-2347971,129322241,032
PBT 70731905097166251,1559938351,401
Adjustment 7495102711120-46-53-14-186
Changes in Working Capital -1333755-18-745327272-653-41051
Tax Paid -217-44-102-217-175-253-255-186-234
Cash Flow From Investing Activity 17-45-155-374-17-421-2,191-1,857-62-928
Capex -55-52-65-106-153-190-118-176-213-174
Net Investments 27-25-120-30199-276-2,123-1,804140-772
Others 453230333645501231218
Cash Flow From Financing Activity 1-191-113-1191-3001,0031,810-71-77
Net Proceeds from Shares 0130251301,0581,9022113
Net Proceeds from Borrowing -38-37-37-54-38-8-1-200
Interest Paid -50-46-29-22-14-10-8-10-9-10
Dividend Paid -6-13-13-16-29-26-25-74-76-76
Others 96-96-64-160269-256-21-7-7-4
Net Cash Flow 8-243685-6175-59-159128
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)4.25.3411.1118.0719.5216.3221.4811.688.0812.1
ROCE (%)5.667.3115.125.9428.0921.0928.6115.9610.7416.29
Asset Turnover Ratio1.191.111.41.431.441.21.230.940.910.86
PAT to CFO Conversion(x)-0.132.441.781.33-0.491.691.290.040.350.98
Working Capital Days
Receivable Days34413638445235354147
Inventory Days45463837415540384348
Payable Days769187969010692766474

Escorts Kubota Ltd Stock News

Escorts Kubota Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Escorts Kubota on 12-Jul-2024 16:01 is ₹3,905.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Jul-2024 16:01 the market cap of Escorts Kubota stood at ₹44,062.8.
The latest P/E ratio of Escorts Kubota as of 12-Jul-2024 16:01 is 42.48.
The latest P/B ratio of Escorts Kubota as of 12-Jul-2024 16:01 is 4.79.
The 52-week high of Escorts Kubota is ₹4,410.4 and the 52-week low is ₹2,290.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Escorts Kubota is ₹8,777 ( Cr.) .

About Escorts Kubota Ltd

From a very modest beginning in 1944 to one of the largest engineering conglomerates in India today, the journey of Escorts is deeply intertwined with that of nation-building. For over seven decades, the company has been helping drive prosperity and happiness for millions of people across the social spectrum as their partner of choice. Transforming lives on the strength of imagination, engineering prowess, and advanced technologies.

The company is operating in the high-growth sectors of Agri Machinery, Material Handling, Construction Equipment and Railway Equipment. The Group has earned the trust of over millions of customers by way of product and process innovations over seven decades of its existence. Escorts endeavors to transform lives in rural and urban India by leading the revolution in agricultural mechanization, modernization of railway technology and transformation of Indian construction.

Business area of the company

The company is one of India’s leading engineering conglomerates with a presence across key sectors of agriculture, infrastructure and railways. Across its businesses, the company continues to foster collaborations, drive modernisation and implement advanced manufacturing practices, to bring the best that the world has to offer to India; and take India’s best capabilities to the world.

Key business divisions

Escorts Agri Machinery (EAM): The company is one of India’s foremost tractor manufacturers, offering tractors from 12 HP to 120 HP under three esteemed brands, Farmtrac, Powertrac and Steeltrac. EAM is shifting its focus from products to services and from machinery to solutions, with an aim to help enhance agricultural productivity and yields, directly impacting farmers’ prosperity and nation’s food sufficiency.

Escorts Construction Equipment (ECE): The company is among the world’s largest manufacturers of Pick-and-Carry (PnC) hydraulic mobile cranes. It is a substantial player in PnC cranes segment in the domestic market. ECE’s range of reliable construction and material handling equipment supports India’s infrastructure growth.

Railway Equipment Division (RED): It manufactures advanced components that exemplify safety, comfort and reliability. These include brake systems, couplers, suspension systems, shock absorbers and rail fastening systems, among others. RED’s wide array of railway products enables the modernisation of the Indian Railways.

History and milestones

  • 1944 - Launch of Escorts (Agents).
  • 1948 - Pioneered farm mechanization in the country by launching Escorts Agricultural Machines, with a franchise from US-based Minneapolis Moline, for marketing tractors, implements, engines & other farm equipment. Launch of Escorts (Agriculture and Machines).
  • 1949 - Franchise of Massey Ferguson tractors for northern India.
  • 1951 - Escorts established India’s first private Institute of Farm Mechanisation at Delhi.
  • 1953 -Escorts (Agents) and Escorts (Agriculture and Machines) merged to form Escorts Agents.
  • 1954 - 1st industrial venture of Escorts to manufacture piston rings in collaboration with Goetze of Germany, in an era when joint ventures of Indian firms with foreign companies were virtually unheard of.
  • 1958 - Started importing Massey Ferguson tractors from Yugoslavia for marketing the same in India.
  • 1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts became the largest producer of piston assemblies in India.
  • 1960 - Setting up of Escorts.
  • 1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in collaboration with URSUS of Poland and 50% indigenous components. Launch of Escort brand of tractors. Collaboration with CEKOP of Poland for manufacture of motorcycles and scooters. Escorts moves into high gear by nurturing the two wheeler culture. The first Rajdoot motorcycle rolls off the assembly line.
  • 1969 - Escorts Tractors was born. A technical and financial joint venture with the global giant Ford Motor Company, USA, to manufacture Ford tractors in India. The years ahead saw Escorts grow as the largest tractor manufacturer in India.
  • 1969 - Escorts Institute of Farm Mechanisation (EIFM) established at Bangalore.
  • 1969 - Escorts Employees Ancillaries (EEAL), a unique venture in industrial democracy comes into being.
  • 1971 - 1st February, the first tractor Ford 3000 rolled out of the factory.
  • 1974 - Crossing national boundaries, Escorts exports for the first time. After winning a global tender, 400 tractors were exported to Afghanistan, which was perhaps the world's largest ever airlift of tractors.
  • 1976 - Ford 3600, an advancement in Farm Mechanisation launched. Trial production of in-plant manufacturing of engine parts (Block & Head).
  • 1977 - Escorts enters the world of self-developed technology by setting up its first independent R&D Center. Escorts Scientific Research Centre marked its beginning at Faridabad by developing its own Engines for E-27 and E-37. Due to constant technology absorption, indigenisation level touched 72% for Ford tractors. 2nd plant at Bangalore for manufacturing piston assemblies was set up.
  • 1979 - Collaboration with JCB Excavators, UK for manufacture of excavators.
  • 1980 - Foray into healthcare, Escorts Hospital and Research Center set up in Faridabad.
  • 1983 - Escorts Tractors (ETL) established a state-of-the-art research and development centre to spearhead newer breakthroughs in farm mechanisation and to maintain industry leadership. Line concept introduced for engine block machining. 11,000 tonne floating dry-dock Escorts I launched.
  • 1984 - JV Escorts-Yamaha to manufacture motorcycles.
  • 1984 - Signing of agreement with the Japanese bike giant Yamaha to manufacture motorcycles with Yamaha technology. Collaboration with Jeumont Schneider of France to manufacture EPABX systems Collaboration with Dynapac of Sweden to manufacture vibratory road compactors.
  • 1985 - Escorts Tractors (ETL) offered its first bonus issue (1:1).
  • 1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac care facility was launched in New Delhi.
  • 1989 - Joint Venture with Claas of Germany to manufacture harvester combines.
  • 1990-91 - First public issue in February 1991, over-subscribed four times. Shares listed on Delhi and Bombay Stock Exchanges.
  • 1993 - Ford 3620 tractor launched.
  • 1996 - Disengagement of joint venture collaboration with New Holland and launch of FARMTRAC Tractor.
  • 1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of transmission and axles. Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile Communications.
  • 1998 - POWERTRAC series of tractors launched.
    MoU was signed with Long Manufacturing Company, USA for setting up a joint venture in USA.
  • 1999 - MoU for Joint Venture with a Polish company POL-MOT was signed for assembly, manufacturing and marketing of farm machinery.
  • 2004 - Divested Escotel Mobile Telecommunications to Idea Cellular.
  • 2005 - Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare.
  • 2006 - Divested in Carraro India.
  • 2006 - Escorts sets up Rs 25 Crore facility in Uttaranchal for manufacture of auto components and railway equipment.
  • 2007 - Escorts Construction Equipment (ECEL) launches TRX series of Pick-n-Carry Cranes in the 23T, 17T and 16T Category.
  • 2008 - Escorts Construction Equipment ties up with Construction Industry - Development Council to provide accredited training programs.
  • 2009 - Escorts Construction Equipment. Ties up with Zoomlion, China.
  • 2011 - Escorts Ltd. signs exclusive agreement with European firm for disc brake system for railway coaches.
  • 2012 - Escorts launches New Powertrac Ds-Plus Tractors in Hyderabad-Escorts ties up with Amul Industries for Mini Tractors.-Escorts launches India's first Executive Tractor.
  • 2015 - On 24 June 2015, the company signed a five-year deal with US-based IT firm Cognizant Technology Solutions. This deal is to bring digital transformation to all its business segments including agri-machinery, material handling and construction equipment, railway equipment and auto components.
  • 2016 - Escorts Ltd Divests Auto Products Business.
  • 2016 - Escorts Ltd Launches New 80 & 90 HP Farmtrac Tractors in Europe & US. - Escorts unveils India’s first Electric Tractor Concept & Global Tractor Series.
  • 2017 - Launched India’s first electric tractor concept, Farmtrac 26E, as part of the New Escorts Tractor
    Series (NETS), at Agritechnica, Germany.
  • 2017 - Received prestigious IRIS Certification for design, development and manufacture of railway components.
  • 2018 - Announced the Vision 2022 roadmap to align the transformational growth strategy for all three businesses
  • 2018 - Partnered Doosan for an exclusive distribution agreement in India.
  • 2019 - Introduced India’s first autonomous tractor concept.
  • 2019 - Collaborated with Kubota to develop value-oriented tractors that cater to farming requirements in India and overseas markets.
  • 2019 - Entered a JV with Tadano to produce specialized cranes that address high-capacity use cases.
  • 2019 - Tied up with seven technology leaders: Microsoft, Reliance Jio, Trimble, Samvardhana Motherson Group, WABCO, Bosch and AVL.
  • 2020 - Deepened partnership with Kubota, where the Japanese tractor and heavy equipment manufacturer picked up a 10% equity stake (post capital reduction) in Escorts, while Escorts received a 40% stake in Kubota’s India business
  • 2020 - Set up the Rajan Nanda Innovation Lab (RNIL) to incubate new, promising and disruptive business ideas.
  • 2020 - Launched India’s first hybrid tractor concept, hybrid backhoe loader concept and multi-utility rural transport vehicle concept.
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