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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500495 | NSE: ESCORTS

Escorts Kubota Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:19 pm

Market Cap 39,280 Cr.
Current Price 3,510
High / Low4,422/2,647
Stock P/E33.8
Book Value 879
Dividend Yield0.51 %
ROCE16.1 %
ROE12.0 %
Face Value 10.0
PEG Ratio1.71

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Escorts Kubota Ltd

Competitors of Escorts Kubota Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
VST Tillers Tractors Ltd 3,802 Cr. 4,4004,889/2,96131.7 1,1290.45 %17.6 %13.5 % 10.0
HMT Ltd 2,168 Cr. 61.9105/41.0 50.80.00 %%% 10.0
Escorts Kubota Ltd 39,280 Cr. 3,5104,422/2,64733.8 8790.51 %16.1 %12.0 % 10.0
Industry Average15,083.33 Cr2,657.3032.75686.270.32%16.85%12.75%10.00

All Competitor Stocks of Escorts Kubota Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales2,2291,7071,6901,9981,8872,0321,8912,2912,2142,3552,0592,3422,094
Expenses1,8901,4761,4671,7261,6471,8361,7462,1061,9812,0241,8072,0271,833
Operating Profit339232223272240196145185233331252314261
OPM %15%14%13%14%13%10%8%8%11%14%12%13%12%
Other Income4243492755362592869995109120
Interest3344433343334
Depreciation31323333343737383840414244
Profit before tax346239234262257192130236278386303379333
Tax %23%25%26%26%26%27%24%23%22%25%26%25%24%
Net Profit26517817319419014199181216290223284252
EPS in Rs19.6813.2212.8415.8414.4710.667.4913.7016.4126.2420.2125.7022.80

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthSep 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4,0496,5024,1133,4324,1455,0596,2625,8107,0147,2838,4298,850
Expenses3,8606,1154,0393,2713,8784,5065,5395,1495,8886,3177,6597,683
Operating Profit190387731612685537236611,1269667701,167
OPM %5%6%2%5%6%11%12%11%16%13%9%13%
Other Income50871243136589988160174228415
Interest9711258513229201713151314
Depreciation50866958637387107118132150167
Profit before tax9227570822085097156251,1559938351,401
Tax %20%10%-8%15%37%32%33%25%25%26%24%25%
Net Profit7324776701313474784728727366371,049
EPS in Rs6.9920.136.235.7610.7128.3139.0738.5364.6355.8248.2694.94
Dividend Payout %19%9%19%21%14%7%6%6%12%13%14%19%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-69.23%-7.89%87.14%164.89%37.75%-1.26%84.75%-15.60%-13.45%64.68%
Change in YoY Net Profit Growth (%)0.00%61.34%95.04%77.74%-127.13%-39.01%86.00%-100.34%2.15%78.13%

Escorts Kubota Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:7%
3 Years:8%
TTM:4%
Compounded Profit Growth
10 Years:16%
5 Years:17%
3 Years:6%
TTM:29%
Stock Price CAGR
10 Years:38%
5 Years:40%
3 Years:25%
1 Year:9%
Return on Equity
10 Years:13%
5 Years:13%
3 Years:11%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:34 am

MonthSep 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital119119119123123123123123135132132110112
Reserves1,5261,7461,7111,3441,4982,0932,5512,9954,8917,4688,0559,0669,725
Borrowings554438484368265512814861525753100
Other Liabilities1,3571,3321,2351,1341,3131,7061,7531,8491,7911,4561,8412,0362,729
Total Liabilities3,5563,6363,5502,9683,1993,9734,7075,0146,8789,10810,08511,26612,666
Fixed Assets1,5951,6541,5961,5391,5811,5881,6471,7021,7961,8411,8911,8712,218
CWIP673956583566801256588114152132
Investments373372373642125494917971,9384,8364,7675,2204,940
Other Assets1,5221,5721,5261,3071,3711,7702,4892,3903,0792,3433,3134,0235,375
Total Assets3,5563,6363,5502,9683,1993,9734,7075,0146,8789,10810,08511,26612,666

Reserves and Borrowings Chart

Cash Flow

MonthSep 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +58343-10212304460-2347971,129322241,032
Cash from Investing Activity +-130-7017-44-155-374-18-421-2,195-1,856-62-928
Cash from Financing Activity +-28-2301-191-113-1191-3001,0031,810-71-77
Net Cash Flow-100438-233685-6176-63-149128

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2012
Free Cash Flow-51.00-411.00-207.003.00502.00442.00613.00-60.00914.00713.00-52.00-364.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthSep 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days432137404043544634405148
Inventory Days704964705861738456627373
Days Payable109689211511713210712394667572
Cash Conversion Cycle429-5-19-29217-3364949
Working Capital Days-1210-15-25-262811-4314031
ROCE %8%17%7%8%13%26%28%21%28%16%11%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters36.59%30.25%28.10%72.90%72.90%72.90%72.90%67.65%67.65%67.65%67.65%67.65%
FIIs21.53%20.13%3.57%4.24%4.73%3.95%4.66%5.61%6.69%5.01%5.85%6.44%
DIIs7.64%8.56%0.39%6.20%7.65%8.49%8.10%9.86%9.34%10.54%9.75%10.37%
Public32.19%38.87%66.13%14.86%13.01%12.99%12.68%14.94%14.41%14.90%14.90%13.82%
Others2.06%2.18%1.80%1.80%1.70%1.67%1.65%1.95%1.92%1.90%1.86%1.73%
No. of Shareholders1,86,6171,80,1351,64,0631,64,2931,57,4711,45,4181,40,5531,36,3511,32,7921,40,3681,40,7051,33,923

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Active Fund780,5263.01323.65400,0002024-11-2295.13%
HDFC Mid-Cap Opportunities Fund - Regular Plan740,4820.44307.04400,0002024-11-2285.12%
Quant Mid Cap Fund583,3002.76241.87400,0002024-11-2245.83%
HDFC ELSS Tax Saver Fund500,0001.32207.33400,0002024-11-2225%
PGIM India Midcap Opportunities Fund447,1241.68185.4400,0002024-11-2211.78%
HSBC Value Fund416,3001.29172.62400,0002024-11-224.08%
Franklin India Prima Fund400,9091.38166.24400,0002024-11-220.23%
HDFC Focused 30 Fund - Regular Plan400,0001.26165.86400,0002024-11-220%
HDFC Multi Cap Fund386,6451.03160.32400,0002024-11-22-3.34%
DSP Mid Cap Fund380,8160.83157.91400,0002024-11-22-4.8%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)96.8058.8574.0692.1555.04
Diluted EPS (Rs.)96.6458.7673.7391.9855.04
Cash EPS (Rs.)108.5660.1967.9973.4747.32
Book Value[Excl.RevalReserv]/Share (Rs.)830.08620.19575.73372.71254.73
Book Value[Incl.RevalReserv]/Share (Rs.)830.08620.19575.73372.71254.73
Revenue From Operations / Share (Rs.)800.87638.83548.62520.24473.98
PBDIT / Share (Rs.)141.6580.2288.6295.4662.00
PBIT / Share (Rs.)126.5568.8578.6186.6953.25
PBT / Share (Rs.)125.3163.8277.4785.7051.09
Net Profit / Share (Rs.)93.4648.8257.9864.7038.57
NP After MI And SOA / Share (Rs.)94.9448.2655.8264.6338.52
PBDIT Margin (%)17.6812.5516.1518.3413.08
PBIT Margin (%)15.8010.7714.3216.6611.23
PBT Margin (%)15.649.9914.1216.4710.78
Net Profit Margin (%)11.667.6410.5612.438.13
NP After MI And SOA Margin (%)11.857.5510.1712.428.12
Return on Networth / Equity (%)11.437.779.6917.3315.14
Return on Capital Employeed (%)14.8810.8513.3722.5520.14
Return On Assets (%)9.316.318.0812.669.41
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)0.820.850.881.131.15
Current Ratio (X)3.152.865.032.731.64
Quick Ratio (X)2.492.154.402.311.14
Inventory Turnover Ratio (X)4.665.715.905.174.11
Dividend Payout Ratio (NP) (%)7.2711.9710.012.814.54
Dividend Payout Ratio (CP) (%)6.279.698.482.473.70
Earning Retention Ratio (%)92.7388.0389.9997.1995.46
Cash Earning Retention Ratio (%)93.7390.3191.5297.5396.30
Interest Coverage Ratio (X)114.0979.7678.1096.4944.11
Interest Coverage Ratio (Post Tax) (X)76.2753.5452.1066.3928.98
Enterprise Value (Cr.)29524.8224485.9522040.7416056.617825.86
EV / Net Operating Revenue (X)3.342.903.042.291.35
EV / EBITDA (X)18.8623.1318.8512.4710.30
MarketCap / Net Operating Revenue (X)3.472.963.082.481.40
Retention Ratios (%)92.7288.0289.9897.1895.45
Price / BV (X)3.353.052.943.462.61
Price / Net Operating Revenue (X)3.472.963.082.481.40
EarningsYield0.030.020.030.050.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Escorts Kubota Ltd as of November 23, 2024 is: 3,583.41

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Escorts Kubota Ltd is Undervalued by 2.09% compared to the current share price 3,510.00

Intrinsic Value of Escorts Kubota Ltd as of November 23, 2024 is: 4,291.67

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Escorts Kubota Ltd is Undervalued by 22.27% compared to the current share price 3,510.00

Last 5 Year EPS CAGR: 19.77%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.58%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 6.83, which is a positive sign.
  3. The company has higher reserves (4,205.31 cr) compared to borrowings (216.31 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (5.58 cr) and profit (367.17 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 10.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Escorts Kubota Ltd:
    1. Net Profit Margin: 11.66%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.88% (Industry Average ROCE: 16.85%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.43% (Industry Average ROE: 12.75%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 76.27
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.49
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 33.8 (Industry average Stock P/E: 32.75)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Escorts Kubota Ltd. is a Public Limited Listed company incorporated on 17/10/1944 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L74899HR1944PLC039088 and registration number is 039088. Currently Company is involved in the business activities of Manufacture of tractors used in agriculture and forestry. Company’s Total Operating Revenue is Rs. 7152.68 Cr. and Equity Capital is Rs. 131.94 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto - Tractors15/5, Mathura Road, Faridabad Haryana 121003corp.secretarial@escortskubota.com
http://www.escortskubota.com
Management
NamePosition Held
Mr. Nikhil NandaChairman & Managing Director
Mr. Seiji FukuokaDeputy Managing Director
Mr. Bharat MadanWholeTime Director & CFO
Ms. Nitasha NandaWhole Time Director
Mr. Yasukazu KamadaNon Executive Director
Mr. Hardeep SinghNon Executive Director
Mr. Dai WatanabeNon Executive Director
Mr. Shingo HanadaNon Executive Director
Mr. Nobushige IchikawaNon Executive Director
Mr. Ravindra Chandra BhargavaIndependent Director
Mr. Vimal BhandariIndependent Director
Ms. Reema NanavatyIndependent Director
Mr. Sunil Kant MunjalIndependent Director
Ms. Tanya DubashIndependent Director
Mr. Harish N SalveIndependent Director
Dr. Rupinder Singh SodhiIndependent Director
Mr. Manish SharmaIndependent Director
Mr. Kenichiro ToyofukuIndependent Director

FAQ

What is the latest intrinsic value of Escorts Kubota Ltd?

The latest intrinsic value of Escorts Kubota Ltd as on 23 November 2024 is ₹3583.41, which is 2.09% higher than the current market price of ₹3,510.00.

What is the Market Cap of Escorts Kubota Ltd?

The Market Cap of Escorts Kubota Ltd is 39,280 Cr..

What is the current Stock Price of Escorts Kubota Ltd as on 23 November 2024?

The current stock price of Escorts Kubota Ltd as on 23 November 2024 is 3,510.

What is the High / Low of Escorts Kubota Ltd stocks in FY 2024?

In FY 2024, the High / Low of Escorts Kubota Ltd stocks is 4,422/2,647.

What is the Stock P/E of Escorts Kubota Ltd?

The Stock P/E of Escorts Kubota Ltd is 33.8.

What is the Book Value of Escorts Kubota Ltd?

The Book Value of Escorts Kubota Ltd is 879.

What is the Dividend Yield of Escorts Kubota Ltd?

The Dividend Yield of Escorts Kubota Ltd is 0.51 %.

What is the ROCE of Escorts Kubota Ltd?

The ROCE of Escorts Kubota Ltd is 16.1 %.

What is the ROE of Escorts Kubota Ltd?

The ROE of Escorts Kubota Ltd is 12.0 %.

What is the Face Value of Escorts Kubota Ltd?

The Face Value of Escorts Kubota Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Escorts Kubota Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE