External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Escorts Kubota Limited / Equity Bottom-Up

<ul><li>Agri-Business Outlook in India: In Q2FY25, Escort's tractor segment experienced a 1% YoY decline in total volumes (vs flat industry growth volumes).</li><li>However, segment revenue was up 5% YoY, led by price hikes taken during the year. Export through the Kubota channel was ~20% in both Q2FY25 and H1FY25.</li><li>The domestic slowdown witnessed in H1FY25 is expected to be followed by a moderate recovery in H2FY25, driven by pent-up demand, government assistance, higher reservoir levels, and better crop realization by the farming community.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Agri-Business Outlook in India: In Q2FY25, Escort's tractor segment experienced a 1% YoY decline in total volumes (vs flat industry growth volumes).However, segment revenue was up 5% YoY, led by price hikes taken during the year. Export through the Kubota channel was ~20% in both Q2FY25 and H1FY25.The domestic slowdown witnessed in H1FY25 is expected to be followed by a moderate recovery in H2FY25, driven by pent-up demand, government assistance, higher reservoir levels, and better crop realization by the farming community.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd - EBITDA Margins to Remain Subdued in the Near Term

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>The recently-concluded monsoons saw ~8% increase over the long period average, lifting the outlook for the upcoming crop cycles.</li><li>Additionally, with the industry base turning favorable (de-grew 13% YoY in H2FY24 and is flattish in FY25YTD), we believe tractors would enter an upcycle from H2FY25.</li><li>Escorts is working on multiple initiatives spanning products, channel, and capacity to address opportunities in India and export markets, with Kubota’s intent to increase sourcing from India as a key mid-tolong term driver (present global component sourcing is at ~USD10-12bnpa).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The recently-concluded monsoons saw ~8% increase over the long period average, lifting the outlook for the upcoming crop cycles.Additionally, with the industry base turning favorable (de-grew 13% YoY in H2FY24 and is flattish in FY25YTD), we believe tractors would enter an upcycle from H2FY25.Escorts is working on multiple initiatives spanning products, channel, and capacity to address opportunities in India and export markets, with Kubota’s intent to increase sourcing from India as a key mid-tolong term driver (present global component sourcing is at ~USD10-12bnpa).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts - Upgrade to BUY on Improving Growth Prospects, Exports Potential

<ul><li>In the backdrop of the company’s positive long-term fundamentals, we value the stock at 24x FY26EPS (earlier 22x FY26E EPS).</li><li>However, in the short term, domestic and export demand for the tractor industry will be under pressure and the construction equipment industry will also witness uncertainty.</li><li>Hence, awaiting more clarity, we maintain our HOLD rating on the stock with a limited upside potential of 2% from the CMP. We suggest a ‘BUY on DIP’ strategy for the stock</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In the backdrop of the company’s positive long-term fundamentals, we value the stock at 24x FY26EPS (earlier 22x FY26E EPS).However, in the short term, domestic and export demand for the tractor industry will be under pressure and the construction equipment industry will also witness uncertainty.Hence, awaiting more clarity, we maintain our HOLD rating on the stock with a limited upside potential of 2% from the CMP. We suggest a ‘BUY on DIP’ strategy for the stockContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd - Strong Q4 EBITDA Margins Led by Growth in the CE Business

<ul><li>Escorts Kubota Ltd. (EKL) reported revenue of Rs 2,342 Cr (up 2%/14% YoY/QoQ), a slight miss on our estimates by 3% on lower-than-expected growth in the RED segment (temporary phenomenon).</li><li>The company’s EBITDA stood at Rs 314 Cr (up 64%/21% YoY/QoQ) inline with our estimates. EBITDA Margins (up ~507/76 bps YoY/QoQ) beat our estimates by 57 bps,mainly on account of higher ASP along with lower personnel and other expenses.</li><li>The company reported Adjusted PAT of ~Rs 284 Cr (up 57%/27% YoY/QoQ), inline with our estimates (1% beat) led by higher share of profit from associates.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd. (EKL) reported revenue of Rs 2,342 Cr (up 2%/14% YoY/QoQ), a slight miss on our estimates by 3% on lower-than-expected growth in the RED segment (temporary phenomenon).The company’s EBITDA stood at Rs 314 Cr (up 64%/21% YoY/QoQ) inline with our estimates. EBITDA Margins (up ~507/76 bps YoY/QoQ) beat our estimates by 57 bps,mainly on account of higher ASP along with lower personnel and other expenses.The company reported Adjusted PAT of ~Rs 284 Cr (up 57%/27% YoY/QoQ), inline with our estimates (1% beat) led by higher share of profit from associates.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd - Q3: Strong EBITDA Margins; Muted Agri Business in the Short Term

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>We continue our earnings coverage highlighting key earnings and what catches our attention in the conference calls.</li>
<li>Names in this auto-focused edition include <a href="https://www.smartkarma.com/entities/mahindra-mahindra-ltd" target="_blank" data-smartkarma-citation="entities:16441:1" rel="noopener">Mahindra &amp; Mahindra (MM IN)</a>, <a href="https://www.smartkarma.com/entities/maruti-suzuki-india-ltd" target="_blank" data-smartkarma-citation="entities:733:1" rel="noopener">Maruti Suzuki India (MSIL IN)</a>, <a href="https://www.smartkarma.com/entities/ola-electric-mobility-pvt-ltd" target="_blank" data-smartkarma-citation="entities:40618:1" rel="noopener">Ola Electric (OLAELEC IN)</a>, <a href="https://www.smartkarma.com/entities/tata-motors-ltd" target="_blank" data-smartkarma-citation="entities:216:1" rel="noopener">Tata Motors Ltd (TTMT IN)</a> .</li>
<li>Bearish names include <a href="https://www.smartkarma.com/entities/tata-motors-ltd" target="_blank" data-smartkarma-citation="entities:216:1" rel="noopener">Tata Motors Ltd (TTMT IN)</a> , <a href="https://www.smartkarma.com/entities/escorts-kubota-ltd" target="_blank" data-smartkarma-citation="entities:6773:1" rel="noopener">Escorts Kubota Limited (ESCORTS IN)</a> and <a href="https://www.smartkarma.com/entities/ola-electric-mobility-pvt-ltd" target="_blank" data-smartkarma-citation="entities:40618:1" rel="noopener">Ola Electric (OLAELEC IN)</a> as a potential name to be bullish on.</li>
</ul>


We continue our earnings coverage highlighting key earnings and what catches our attention in the conference calls.
Names in this auto-focused edition include Mahindra &amp; Mahindra (MM IN), Maruti Suzuki India (MSIL IN), Ola Electric (OLAELEC IN), Tata Motors Ltd (TTMT IN) .
Bearish names include Tata Motors Ltd (TTMT IN) , Escorts Kubota Limited (ESCORTS IN) and Ola Electric (OLAELEC IN) as a potential name to be bullish on.


Namaste India 🙏 | Earnings Edition - Autos

India

Escorts Kubota Limited is among India's leading engineering conglomerates, operating in the high growth sectors of Agri Machinery, Material Handling, Construction Equipment and Railway Equipment. The Group has earned the trust of over 5 million customers by way of product and process innovations over seven decades.

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Escorts Kubota Limited (ESCORTS IN)

Escorts Kubota Ltd - EBITDA Margins to Remain Subdued in the Near Term

Agri-Business Outlook in India: In Q2FY25, Escort's tractor segment experienced a 1% YoY decline in total volumes (vs flat industry growth volumes).

Axis Direct

Escorts - Upgrade to BUY on Improving Growth Prospects, Exports Potential

The recently-concluded monsoons saw ~8% increase over the long period average, lifting the outlook for the upcoming crop cycles.

Emkay

Escorts Kubota Ltd - Strong Q4 EBITDA Margins Led by Growth in the CE Business

Hence, awaiting more clarity, we maintain our HOLD rating on the stock with a limited upside potential of 2% from the CMP. We suggest a ‘BUY on...

Axis Direct

Escorts Kubota Ltd - Q3: Strong EBITDA Margins; Muted Agri Business in the Short Term

The company reported Adjusted PAT of ~Rs 284 Cr (up 57%/27% YoY/QoQ), inline with our estimates (1% beat) led by higher share of profit from...

Axis Direct

Namaste India 🙏 | Earnings Edition - Autos

We highlight key earnings and call takeaways from companies like Mahindra & Mahindra, Maruti Suzuki India, Ola Electric, and Tata Motors.

Pranav Bhavsar

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