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Escorts Kubota Limited (ESCORTS) Fair Value & Analysis

Industrials · IN · Market cap ₹324B (≈ $3.4B) · ISIN INE042A01014

What is Escorts Kubota Limited really worth?

EK Escorts Kubota Limited ESCORTS · NSE
Price₹2,969
Fair Value₹3,776
Upside+27.2%
Quality66/100

A solid business, trading 21% below our fair value of ₹3,776.

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Strengths

Highly profitable · 20.8% net margin
Low debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Mixed Growth (revenue 5y +10.5 %/yr)
!Moderate moat 63/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 24 out of 100

For context

·1.21% dividend yield
Evidence: Medium Range ₹2,663 – ₹5,545

Fair value as of: Aug 24, 2026

From 26 valuation models · updated 12 days ago

Fair value updated Aug 24, 2026, revised from ₹2,098 to ₹3,776 (+80.0%) since Aug 13, 2026. Share price −3.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹2,663 to ₹5,545) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹4,315 ₹1,102 Fair Value ₹3,776 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

60‑month range ₹1,102 – ₹4,315 · fair‑value band ₹2,663 – ₹5,545 · the ₹2,969 price screens below the ₹3,776 fair value. Dashed = 300-day average. As of Aug 24, 2026.

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Analysis

Escorts Kubota Limited (ESCORTS) currently trades at ₹2,969, while our model-based Fair Value estimate is ₹3,776, implying the stock looks roughly 21.4% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of ₹3,928 per share, and 7 of the 26 models we run sit above the ₹2,969 price. Bear case: the Dividend Discount group reads lowest at ₹619.24, and 19 of the 26 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Escorts Kubota Limited generated revenue of ₹115B at a net margin of 20.8%. Revenue grew 21.4% year over year. It earns a return on equity of 12.0%. The balance sheet holds a net cash position of ₹162M. Fundamentals as of Aug 24, 2026

Our scenario range runs from ₹2,663 (bear case) to ₹5,545 (bull case); at ₹2,969, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −18% fair-value upside, at 27%, ESCORTS screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹38.17 per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence ₹1,302 ₹2,338 ₹4,180 77
Growth DCF ₹1,303 ₹2,288 ₹4,035 75
5Y EBITDA Exit ₹1,255 ₹2,184 ₹3,332 74
All 26 models by family
DCF Models
FCF DCF best evidence ₹1,302 ₹2,338 ₹4,180 77
Owner Earnings ₹2,834 ₹5,105 ₹9,143 73
5Y Revenue Exit ₹1,113 ₹1,895 ₹2,943 71
5Y EBITDA Exit ₹1,255 ₹2,184 ₹3,332 74
5Y P/E Exit ₹2,583 ₹4,873 ₹7,479 69
10Y Revenue Exit ₹1,129 ₹1,899 ₹3,048 65
10Y EBITDA Exit ₹1,261 ₹2,114 ₹3,375 67
10Y P/E Exit ₹2,155 ₹4,109 ₹6,866 62
Earnings-Based
Graham-Dodd ₹1,480 ₹6,434 ₹8,799 64
Lynch FV ₹1,656 ₹2,365 ₹3,075 61
PEG = 1.0 ₹1,656 ₹2,365 ₹3,075 57
EPV ₹740.51 ₹868.33 ₹981.95 74
Dividend Discount
Gordon GGM ₹346.26 ₹755.95 ₹1,272 65
DDM Multi-Stage ₹346.26 ₹619.24 ₹787.82 66
Multiples
P/E Multiple ₹3,427 ₹4,569 ₹5,712 63
P/S Multiple ₹1,573 ₹2,098 ₹2,622 58
P/B Multiple ₹2,774 ₹3,699 ₹4,624 55
EV/EBIT ₹1,455 ₹1,934 ₹2,414 66
EV/EBITDA ₹1,342 ₹1,784 ₹2,226 67
EV/Revenue ₹1,043 ₹1,483 ₹1,923 53
Asset-Based
NCAV (Graham) ₹562.26 ₹753.43 ₹1,125 54
Growth DCF
Growth DCF ₹1,303 ₹2,288 ₹4,035 75
Rev-Margin DCF ₹1,113 ₹1,881 ₹2,853 71
Economic Profit
Residual Income ₹1,515 ₹2,071 ₹10,027 64
ROIC Compounder ₹740.51 ₹868.33 ₹981.95 72
Growth Earnings
Growth-Adj P/E ₹2,750 ₹3,928 ₹5,106 67

Widest divergence: Growth Earnings (₹3,928) versus Dividend Discount (₹619.24). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 23.9
P/S ratio 4.96 P/E × margin
EPS (TTM) ₹124.18 price ÷ EPS = P/E 23.9
Dividend yield 1.2% payout 29.0%
Net margin 20.7% FY2026
Return on equity 12.0% TTM
More key figures
Profitability
Return on assets (EBIT) 13.8% avg 5y
Operating margin 10.6% TTM
Growth
Revenue (TTM) ₹115B TTM
Revenue growth (YoY) +21.4% 3y avg +11.0%
EPS growth (YoY) +0.6%
Balance sheet & cash flow
Free cash flow ₹10.6B FY2026
Net cash ₹162M FY2026

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 65 · Market factors (momentum, volatility) 43

Profitability 67
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Escorts Kubota Limited manufactures and sells agricultural and construction equipment in India and internationally. The company offers rotavators, straw reapers, super seeders, MB ploughs, orchard sprayers, paddy harvesters, seed drills, and rice transplanters; filters, pumps, engine assemblies, gear parts, clutch systems, hydraulic pumps, cylinders, …

Full company description

Escorts Kubota Limited manufactures and sells agricultural and construction equipment in India and internationally. The company offers rotavators, straw reapers, super seeders, MB ploughs, orchard sprayers, paddy harvesters, seed drills, and rice transplanters; filters, pumps, engine assemblies, gear parts, clutch systems, hydraulic pumps, cylinders, lubricants, oils, and service kits; and generator and diesel engines; and cranes, soil compactors, backhoe loaders, tandem rollers, and mini excavators. It also provides agricultural tractors; construction, earth moving, and material handling equipment; and round and flat tubes, heating elements, center buffer couplers, automobile shock absorbers, telescopic front fork and Mcpherson struts, internal combustion engines, and brake blocks. In addition, the company develops, produces, and imports parts and accessories, as well as provides maintenance and warranty, crop, and financing services. It offer its products under the Farmtrac, Powertrac, Digitrac, Steeltrac, Farmpower, and Kubota brands. The company was formerly known as Escorts Limited and changed its name to Escorts Kubota Limited in June 2022. Escorts Kubota Limited was incorporated in 1944 and is based in Faridabad, India. Escorts Kubota Limited is a subsidiary of Kubota Corporation.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Escorts Kubota Limited reported revenue of ₹115B in FY2026 versus ₹72.8B in FY2022, a compound +12.2%/yr. Reported net income was ₹23.9B in FY2026, compounding +34.3%/yr from FY2022.

Growth Quality 75/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹115B
Latest YoY
+12.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.5%
Avg. revenue growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.4%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−4.6% (−5.8 + 1.2)
Revenue +12.2%/yr
FY22 ₹72.8B
FY23 ₹84.3B
FY24 ₹98.0B
FY25 ₹102B
FY26 ₹115B
Net income +34.3%/yr
FY22 ₹7.4B
FY23 ₹6.4B
FY24 ₹10.8B
FY25 ₹12.6B
FY26 ₹23.9B
Character of growth · EPS growth decomposed (2015-2026) +35.6 % p.a.
Revenue per share +10.5 %

of which total revenue +11.7 % · buybacks/dilution −1.0 %

EBIT margin +0.1 %
Tax rate +0.8 %
Residual (interest, one-offs) +21.5 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Escorts Kubota Limited Fair Value". https://www.fairvalue-calculator.com/stock/ESCORTS

Peer Group

Farm & Heavy Construction Machinery · 150 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside +27% · Above median
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth 21% · Top 25%
Dividend yield (TTM) 1.2% · Below median

Valuation Multiples vs Farm & Heavy Construction Machinery median · lower = cheaper

P/E (TTM) 23.9× · Pricier than median
P/B 2.62× · Pricier than median
P/S (TTM) 2.81× · Pricier than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 21.8× · Pricier than 75% of peers
PEG 1.61× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE70 · sector 12
FUTURE100 · sector 29
PAST48 · sector 31
HEALTH100 · sector 93
DIVIDEND24 · sector 39

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Farm & Heavy Construction Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
Caterpillar Inc CAT $800.25 $307.83 −62%
Deere & Company DE $622.66 $182.29 −71%
AB Volvo (publ), VOLVA kr 351.40 kr 288.08 −18%
PACCAR Inc PCAR $122.45 $94.80 −23%
Daimler Truck Holding DTG €45.73 €47.70 +4%
Epiroc AB EPIA kr 272.80 kr 144.14 −47%
Exor N.V EXO €72.10 €123.44 +71%
Sany Heavy Industry Co 600031 ¥19.06 ¥20.84 +9%
Traton SE 8TRA €37.78 €52.60 +39%
Metso Oyj METSO €16.75 €10.73 −36%

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Frequently asked questions

Is Escorts Kubota Limited (ESCORTS) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of ₹3,776 versus a price of ₹2,969, about +27% upside (undervalued).
What is the fair value of ESCORTS?
Our model-based fair value for Escorts Kubota Limited is ₹3,776 (as of Aug 24, 2026), built from audited fundamentals. The current price: ₹2,969.
What is the quality score of ESCORTS?
Escorts Kubota Limited has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Escorts Kubota Limited (ESCORTS)?
Escorts Kubota Limited reported trailing-twelve-month revenue of about ₹115B (latest available figure, as of Aug 24, 2026).
What is the net profit margin of ESCORTS?
The net profit margin of Escorts Kubota Limited is about 20.8%, meaning it keeps roughly 20.8% of revenue as net income. Based on the latest reported figures.
Does Escorts Kubota Limited pay a dividend?
Escorts Kubota Limited currently shows a dividend yield of about 1.21% relative to its recent price (as of Aug 24, 2026).
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