IGI Logo

India's Escorts Kubota reported second-quarter profit above estimates on Thursday, helped by growth in its agricultural machinery segment.

The company reported standalone net profit of 3.27 billion rupees ($38.8 million) in the three months ended Sept 30. Analysts were expecting a profit of 2.63 billion rupees, according to data compiled by LSEG.

Revenue rose 0.5% to 24.76 billion rupees, while expenses rose by 0.7% to 22.81 billion rupees.

For further results highlights, click

KEY CONTEXT

The company's domestic sales rose 0.3%, compared to a 4.3% decline in the year-ago period.

Its main revenue driver, the agri machinery segment which includes tractors, sprayers, and tillage tools, grew 5.3% year-over-year, offsetting weakness in the construction machinery and railway segments.

Escorts Kubota also benefitted from a deferred tax gain of 524.8 million rupees, while the cost of raw materials fell 13.1%.

PEER ANALYSIS

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBI Price/S Revenue Profit Mean # of Stock to Div

TDA ales growth growth rating* analyst price yield

s target** (%)

Escorts Kubota 30.66 25.42 NULL 12.73 14.49 Sell 8 1.06 0.48

Mahindra and 27.29 25.42 NULL 12.49 14.72 Buy 32 0.91 0.72

Mahindra

Eicher Motors 27.80 24.99 6.65 11.97 13.00 Hold 27 1.04 1.04

Tata Motors 11.13 5.23 0.65 7.27 -0.19 Buy 29 0.73 0.36

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 84.3600 rupees