Escorts Kubota trying to bounce after fall and consolidation. Escorts Kubota Ltd. manufactures and supplies agricultural machinery, auto suspension and ancillary products and railway equipment. It operates through the following segments: Agri Machinery Products, Construction Equipment, Railway Equipment and Others. The Agri Machinery Products segment manufactures tractors, lubricants, engine and gensets; and provides crop solutions. The Construction Equipment segment manufactures and markets construction and material handling equipment like cranes, loaders, vibratory rollers, and forklifts. The Railway Equipment segment manufactures railway components, which includes brakes and brake systems, couplers, rail fastening systems, and automatic twist locks.
Escorts Kubota Ltd CMP is 4014.95. The positive aspects of the company are Company with Low Debt, Company with Zero Promoter Pledge, FII / FPI or Institutions increasing their shareholding AND MFs increased their shareholding last quarter. The Negative aspects of the company are High PE (PE=42.3), Declining Net Cash Flow : Companies not able to generate net cash, Companies with high market cap, lower public shareholding AND Increasing Trend in Non-Core Income.
Entry can be taken after closing above 4020. Targets in the stock will be 4081 and 4191. The long-term target in the stock will be 4305. Stop loss in the stock should be maintained at Closing below 3855.
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Escortskubota
Escorts Looking good after strong consolidationEscorts Kubota Limited is one of India’s leading engineering conglomerates operating in the high-growth sectors of agri-machinery, construction & material handling equipment, railway equipment and auto components. With over 1 million tractors in the fields in India, 16,000 construction and material handling equipment and 5 million auto-components manufactured till date, Escorts becomes a long term investment story. CMP of the stock is 1961.95. Negatives of the company are High valuation (P.E. = 42.4). Declining annual net profit and FIIs are decreasing stake. Positives of the company are No debt, zero promoter pledge & MFs are increasing stake. Entry in the stock should be done after closing above 1992. Targets in the stock will be 2046 and 2142. Medium term target will be 2213. Long term target in the stock will be 2287 and 2361. Stop loss in the stock should be maintained at a Monthly closing below 1769. The stock is long term investment idea.