Escorts Kubota Ltd

NSE: ESCORTS BSE: 500495

₹2859.80

(0.72%)

Thu, 04 Jun 2026, 05:39 pm

Market Cap310.52B

PE Ratio13.15

Dividend0.99

Producer Manufacturing

Auto Parts: OEM

24.5K

Escorts Kubota Analysis

Pros

Dividends after 3 years are expected to be thoroughly covered by earnings (10.7x coverage).

Cons

Escorts is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
No need to calculate the sustainability of Escorts's dividends as it is not paying a notable one for India.
Escorts is not paying a notable dividend for India, therefore no need to check if the payments are stable.
Escorts's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
Escorts's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Escorts's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Escorts's earnings are expected to increase by more than the low risk growth rate in 3 years time.
Performance (ROE) is expected to be above the current IN Machinery industry average.
An improvement in Escorts's performance (ROE) is expected over the next 3 years.
Escorts's revenue growth is expected to exceed the India market average.

Cons

Cash flow for Escorts is expected to decrease over the next 2 years.
Escorts's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
Escorts's earnings growth is positive but not above the India market average.
Escorts's earnings are expected to decrease over the next year.
Escorts's net income is expected to increase but not above the 50% threshold in 2 years time.
Escorts is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Escorts's revenue is expected to increase but not above the 50% threshold in 2 years time.
Escorts's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).

Pros

Escorts is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Escorts is profitable, therefore cash runway is not a concern.
Escorts is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (4151.9%, greater than 20% of total debt).
Debt is covered by short term assets, assets are 151.6x debt.
Escorts's cash and other short term assets cover its long term commitments.
The level of debt compared to net worth has been reduced over the past 5 years (26.2% vs 0.6% today).
Interest payments on debt are well covered by earnings (EBIT is 32.2x coverage).
Escorts's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).

Cons

Pros

The tenure for the Escorts board of directors is about average.
Nikhil's compensation has been consistent with company performance over the past year, both up more than 20%.
The tenure for the Escorts management team is about average.

Cons

Nikhil's remuneration is higher than average for companies of similar size in India.
Escorts individual insiders have only sold shares in the past 3 months.

Pros

Cons

Pros

Escorts has delivered over 20% year on year earnings growth in the past 5 years.
Escorts used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
Escorts has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

Escorts's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Escorts has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Escorts's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.

Pros

ESCORTS outperformed the Machinery industry which returned -23.7% over the past year.
ESCORTS outperformed the Market in India which returned -14.5% over the past year.
NSEI:ESCORTS is up 16.4% outperforming the Machinery industry which returned 8.3% over the past month.
NSEI:ESCORTS is up 16.4% outperforming the market in India which returned 8% over the past month.

Cons

Escorts's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Escorts's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Escorts is overvalued based on assets compared to the IN Machinery industry average.
Escorts is poor value based on expected growth next year.
Escorts is overvalued based on earnings compared to the IN Machinery industry average.
Escorts is overvalued based on earnings compared to the India market.