Kotak has shared key takeaways from the management meet of Escorts Kubota, highlighting the company’s focus on domestic growth while acknowledging challenges in export and construction equipment segments.
The brokerage noted that the domestic tractor industry is on track to achieve mid-single-digit volume growth, though export trends remain weak. Meanwhile, demand in the construction equipment segment continues to face pressure.
Kotak pointed out that the gradual operational integration of EKI and KAI is expected to result in margin improvements over time. Additionally, the company is prioritizing market share growth in the domestic tractor industry through product launches, strengthening its captive finance arm, and expanding distribution reach.
Escorts Kubota is also focusing on improving its non-tractor mix, which includes spares, implements, and engines, to drive overall performance.
The current market price (CMP) of Escorts Kubota stands at ₹3,430.75.
Disclaimer: The above is for informational purposes only. Please consult a financial advisor before making any investment decisions.