(Reuters) – India’s Escorts Kubota reported second-quarter profit above estimates on Thursday, helped by growth in its agricultural machinery segment.
The company reported standalone net profit of 3.27 billion rupees ($38.8 million) in the three months ended Sept 30. Analysts were expecting a profit of 2.63 billion rupees, according to data compiled by LSEG.
Revenue rose 0.5% to 24.76 billion rupees, while expenses rose by 0.7% to 22.81 billion rupees.
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KEY CONTEXT
The company’s domestic sales rose 0.3%, compared to a 4.3% decline in the year-ago period.
Its main revenue driver, the agri machinery segment which includes tractors, sprayers, and tillage tools, grew 5.3% year-over-year, offsetting weakness in the construction machinery and railway segments.
Escorts Kubota also benefitted from a deferred tax gain of 524.8 million rupees, while the cost of raw materials fell 13.1%.
PEER ANALYSIS
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/S Revenue Profit Mean # of Stock to Div
TDA ales growth growth rating* analyst price yield
s target** (%)
Escorts Kubota 30.66 25.42 NULL 12.73 14.49 Sell 8 1.06 0.48
Mahindra and 27.29 25.42 NULL 12.49 14.72 Buy 32 0.91 0.72
Mahindra
Eicher Motors 27.80 24.99 6.65 11.97 13.00 Hold 27 1.04 1.04
Tata Motors 11.13 5.23 0.65 7.27 -0.19 Buy 29 0.73 0.36
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 84.3600 rupees
(Reporting by Yagnoseni Das in Bengaluru; Editing by Varun H K)
