Escorts Kubota Revises FY27 Outlook Upward, Eyes Capex of INR 850-900 Crores and Multi-Segment Growth
Escorts Kubota has raised its FY27 tractor industry growth forecast to a mid-single-digit rise from an earlier +2% to +3% estimate, with company sales expected to outpace the industry. The construction equipment sector is projected to grow 12% to 15% in FY27, led by mini excavators and cranes, while backhoe loaders and compactors are forecast to grow at 5% to 7% and 5% to 6%, respectively. Total FY27 capital expenditure is estimated at INR 850-900 crores, split between INR 450-500 crores for new land purchases and INR 350-400 crores for regular capital expenses. Export performance is expected to remain steady in FY27, with stronger growth anticipated in FY28 on the back of North American demand.
Kotak Institutional Equities Rates Escorts Kubota as Add with Target Price of ₹3,400
Kotak Institutional Equities has assigned an Add rating to Escorts Kubota with a target price of ₹3,400. The brokerage cites a flat domestic tractor industry outlook, with the company focusing on market share gains via new products, captive finance, and distribution expansion. A rising non-tractor business mix is expected to reduce cyclicality, while early recovery in construction equipment demand adds to the positive outlook. Medium-term profitability improvement is anticipated despite near-term margin headwinds.
Escorts Kubota Records ₹28.39 Crore Block Trade on NSE at ₹2845.00 Per Share
Escorts Kubota recorded a block trade on the NSE involving approximately 99,802 shares at a price of ₹2845.00 per share. The total value of the transaction stood at ₹28.39 crores. Such block deals are generally associated with institutional-level buying or selling activity and are considered noteworthy market events.
Kotak Securities Maintains Add Rating on Escorts Kubota, Raises Target Price to ₹3425
Kotak Securities has maintained its Add rating on Escorts Kubota, raising the target price to ₹3425 from ₹3375. Near-term performance remained marginally below estimates, with the domestic tractor industry expected to stay flat in FY27. A gradual recovery in construction equipment is anticipated from H2FY27, while diversification into spares, engines, and agri-solutions is expected to strengthen and stabilise the company's revenue base.
JPMorgan Upgrades Escorts Kubota to Neutral with Target Price of ₹3,175
JPMorgan has upgraded Escorts Kubota to Neutral rating with a target price of ₹3,175, up from ₹3,170. The upgrade is attributed to easing disruption risks and improved outlook despite ongoing commodity inflation pressures. The broader auto sector faces challenges with FY27 EPS cuts of 2-16% across companies, reflecting sector-wide recalibration in earnings expectations.
CLSA Maintains Outperform Rating on Escorts Kubota Despite Target Price Cut to Rs 3,752
CLSA has revised Escorts Kubota's target price to Rs 3,752 from Rs 4,313 while maintaining an Outperform rating. The brokerage cut FY27/28 EPS estimates by 8-13% as part of broader OEM sector cuts ranging from 3-13%, reflecting near-term earnings pressure. Despite the downward revisions, CLSA maintains a positive stance on the agricultural and construction equipment manufacturer's prospects.
19Mar 26
Macquarie Assigns Outperform Rating to Escorts Kubota with Target Price of ₹4314 Amid Positive Auto Sector Outlook
Macquarie maintains positive bias on Indian auto sector with SUV-led passenger vehicle growth and broad-based two-wheeler demand where scooters outperform motorcycles. The brokerage assigned Outperform rating to Escorts Kubota with target price of ₹4314.00, citing strong segment tailwinds supporting the investment thesis.