Escorts Kubota Limited

NSE: ESCORTS | BSE: 500495 | Sector: Agri Machinery & Construction Equipment | Mid-Cap

Business Overview

Escorts Kubota Limited (EKL) is one of India’s leading engineering conglomerates, incorporated in 1944 and headquartered in Faridabad, Haryana. The company operates across three key business segments: Agri Machinery (~70% of revenue — tractors, engines, implements, spare parts and lubes under the Farmtrac, Powertrac, Steeltrac and Kubota brands), Construction Equipment (~19% — material handling, road compaction and earthmoving equipment), and Railway Equipment (~11% — brake systems, couplers, suspension and friction products, reported as discontinued operations from FY25 onwards). Japan-based Kubota Corporation became a joint promoter in June 2022, holding 53.50% stake, with the Nanda family holding ~14.5%. The company is virtually debt-free with a healthy balance sheet. FY25 standalone revenue from continuing operations stood at ₹10,187 Cr, up 4.7% YoY. EKL is also ramping up Kubota-branded component exports, with significant growth headroom projected over FY26–FY28.

Financial Summary

Technical Snapshot

Escorts Kubota has undergone a significant correction from its 52-week high of ₹4,180, and is currently trading near the ₹2,749–₹2,800 zone — approximately 33% below its peak. The stock has been building a base near the critical support of ₹2,700–₹2,750, which has held on a closing basis despite sustained selling pressure over the past several months. Price action over recent sessions indicates tapering volumes on the downside, suggesting that selling intensity is diminishing. The RSI is approaching oversold levels indicating reversal opportunities for this counter. The stock may move towards the first target of ₹2,975. A sustained breakout above ₹2,975 could push the stock towards ₹3,010 levels. Targets are projected over a 2–3 week horizon based on current price structure and improving rural demand outlook.