Performance in line; near-term outlook remains weak

Company

10 May 2024 | 5 Min Read

Escorts Kubota's 4QFY24 results update includes changes in estimates, target price, and rating.

The company's financials and valuations show a growth in sales and EBITDA margin.

The management commentary highlights the outlook for tractor demand, capex plans, and business segments.

The construction equipment segment is expected to see a sustainable EBIT margin and rebound in demand post-monsoon.

The railway segment's order book and EBIT margin for FY25 are discussed in the management commentary.

The valuation and view suggest a neutral rating with a target price based on EPS.