Escorts Kubota share price: Motilal Oswal puts neutral stance on Jhunjhunwala portfolio tractor stock post Q4 results – Do you hold? – Markets

Escorts Kubota share price: Motilal Oswal puts neutral stance on Jhunjhunwala portfolio tractor stock post Q4 results - Do you hold? - Markets


Escorts Kubota share price: Escorts Kubota Ltd on Thursday, May 7, announced its Q4 quarterly results for financial year 2025-26. The tractor maker also declared a final dividend of Rs 33 per share for FY26.

Escorts Kubota, formerly Escorts Limited, operates in the sectors of agricultural machinery, construction machinery, material handling, and railway equipment. Its headquarters are located in Faridabad, Haryana. This stock is also part of Rakesh Jhunjhunwala’s portfolio.

Following its Q4 result, the brokerage firm, Motilal Oswal Financial Services, shared its stance on the tractor manufacturer. Here is what investors must know if they have this stock in their portfolio.

Motilal Oswal Financial Services maintains a Neutral stance on Escorts Kubota with a target price (TP) of approximately Rs 3,159, implying a downside potential of around 6 per cent.

The brokerage further highlighted that the company’s outlook remains modest amid ongoing macroeconomic challenges.

New product launches are expected to support a revival in market share.

Earnings missed estimates due to lower-than-expected other income.

The firm further highlighted that the company’s average tractor realisations remained flat YoY, impacted by an adverse product mix.

Escorts Kubota’s operating leverage benefits contributed to margin improvement during the period.

Management expects tractor industry demand to moderate to a largely flat trajectory (±2-3%) in FY27.

Continued market share loss in the tractor segment over the last couple of years remains a key investor concern.

Synergies between Escorts and Kubota are likely to materialise over the medium to long term.

The brokerage factor in Escorts to deliver a CAGR of 7%/4%/9% in revenue/EBITDA/PAT over FY26-28E.

The company has recommended a final dividend of Rs 33 per share for the quarter.

“Recommended Final Dividend of Rs 33/- (330%) per fully paid-up equity share of Rs 10/- each, for the Financial Year 2025-26, subject to the approval of members at the ensuing Annual General Meeting (AGM). The Final dividend, if declared, shall be paid within 30 days of the date of the AGM. The total dividend (including the special dividend) for the financial year would be Rs 51/- (510%) per fully paid-up equity share of Rs 10/- each,” the company said in its exchange filing.

Also read: Britannia Industries share price in focus: Brokerages bullish on FMCG stock post Q4 results – Should you buy?

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)



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