External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Equity Bottom-Up

Escorts Kubota Limited / Equity Bottom-Up

<ul><li>Kubota Ltd (EKL) revenue for Q1FY24 was reported at Rs 2,355 Cr (up 16%/6% YoY/QoQ), which beat our estimates by 2% on higher price realisation in Agri/ECE Business and better than expected growth in the RED segment.</li><li>The company’s EBITDA stood at Rs 331 Cr (up 63%/42% YoY/QoQ) and beat our/consensus estimates by 63%/30% respectively.</li><li>EBITDA Margins (up ~400/350 bps YoY/QoQ) beat estimates by 280 bps mainly on account of the full impact of the price hikes taken in Q4FY23, commodity softening, cost reduction efforts and operating leverage. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Kubota Ltd (EKL) revenue for Q1FY24 was reported at Rs 2,355 Cr (up 16%/6% YoY/QoQ), which beat our estimates by 2% on higher price realisation in Agri/ECE Business and better than expected growth in the RED segment.The company’s EBITDA stood at Rs 331 Cr (up 63%/42% YoY/QoQ) and beat our/consensus estimates by 63%/30% respectively.EBITDA Margins (up ~400/350 bps YoY/QoQ) beat estimates by 280 bps mainly on account of the full impact of the price hikes taken in Q4FY23, commodity softening, cost reduction efforts and operating leverage. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd - Overall Beat – Focus on Operational Efficiencies

<ul><li>Escorts Kubota Ltd (EKL) revenues for Q4FY23 were reported at Rs 2,214 Cr (up 17% YoY but down 3% QoQ), which was in line with our estimates.</li><li>The sequential revenue growth was led by lower tractor sales (down 12% QoQ/ up 14% YoY ) on account of the advancement of the festive season in Mar’23 as against Apr’23 in the last year, combined with the unseasonal rainfall.</li><li>The company’s EBITDA stood at Rs 233 Cr (down 6% YoY but up 22% QoQ) and beat our/consensus estimates by 14%/21% respectively.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Escorts Kubota Ltd (EKL) revenues for Q4FY23 were reported at Rs 2,214 Cr (up 17% YoY but down 3% QoQ), which was in line with our estimates.The sequential revenue growth was led by lower tractor sales (down 12% QoQ/ up 14% YoY ) on account of the advancement of the festive season in Mar’23 as against Apr’23 in the last year, combined with the unseasonal rainfall.The company’s EBITDA stood at Rs 233 Cr (down 6% YoY but up 22% QoQ) and beat our/consensus estimates by 14%/21% respectively.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd - Long-Term Growth Drivers Intact; Maintain BUY

<ul><li>The growth trend in the domestic tractor industry is likely to continue in Q4FY23 and industry volumes are likely to cross peak volumes of 9 Lc tractors in the fiscal.</li><li>Sales to Kubota's global network are also gradually increasing and in Q3FY23 it contributed more than 35% of the total export volumes.</li><li>As per the management, the company has been steadily regaining its lost market share from 9.1% in Q1FY23 to 9.7% in Q2 and to 10.6% in Q3 (10.4% in Q3FY22).</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

The growth trend in the domestic tractor industry is likely to continue in Q4FY23 and industry volumes are likely to cross peak volumes of 9 Lc tractors in the fiscal.Sales to Kubota's global network are also gradually increasing and in Q3FY23 it contributed more than 35% of the total export volumes.As per the management, the company has been steadily regaining its lost market share from 9.1% in Q1FY23 to 9.7% in Q2 and to 10.6% in Q3 (10.4% in Q3FY22).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd - Growth Outlook Intact; Maintain BUY

<ul><li>Escorts Kubota Ltd (EKL) revenues for Q2FY23 were reported at Rs 1,884 Cr (2% beat) which grew by 12.2% YoY but down 6.5% QoQ.</li><li>The company’s EBITDA de-grew 33%/24% YoY/QoQ to Rs 153 Cr and stood significantly below our estimates by 23%.</li><li>The miss was mainly on account of unabsorbed RM inflation, lower operating leverage (volume drop in both tractor and construction equipment business), and lower-than-expected realisations in the tractors business.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Escorts Kubota Ltd (EKL) revenues for Q2FY23 were reported at Rs 1,884 Cr (2% beat) which grew by 12.2% YoY but down 6.5% QoQ.The company’s EBITDA de-grew 33%/24% YoY/QoQ to Rs 153 Cr and stood significantly below our estimates by 23%.The miss was mainly on account of unabsorbed RM inflation, lower operating leverage (volume drop in both tractor and construction equipment business), and lower-than-expected realisations in the tractors business.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Escorts Kubota Ltd - Poised to Gain Global Footprint; Margins Seen Bottoming Out

<div><div><div><div><ul><li>Demand Outlook: The management expects the tractor industry volume to grow by ~20% in Q1FY23E on account of normal monsoon expectations and higher food grain prices.</li></ul><div><div><div><div><ul><li>Margin outlook: To mitigate the impact of higher input cost, company took a price hike of ~2% in Apr’22 and would further take a price hike of ~2% in Q2FY23 as well.</li></ul><div><div><div><div><ul><li>Railway Equipment Division (RED): The segment revenue stood at Rs 173 Cr for the quarter as against Rs 146 Cr in Q4FY21.</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Demand Outlook: The management expects the tractor industry volume to grow by ~20% in Q1FY23E on account of normal monsoon expectations and higher food grain prices.Margin outlook: To mitigate the impact of higher input cost, company took a price hike of ~2% in Apr’22 and would further take a price hike of ~2% in Q2FY23 as well.Railway Equipment Division (RED): The segment revenue stood at Rs 173 Cr for the quarter as against Rs 146 Cr in Q4FY21.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

India

Escorts Kubota Limited is among India's leading engineering conglomerates, operating in the high growth sectors of Agri Machinery, Material Handling, Construction Equipment and Railway Equipment. The Group has earned the trust of over 5 million customers by way of product and process innovations over seven decades.

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Escorts Kubota Limited (ESCORTS IN)

Escorts Kubota Ltd - Overall Beat – Focus on Operational Efficiencies

EBITDA Margins (up ~400/350 bps YoY/QoQ) beat estimates by 280 bps mainly on account of the full impact of the price hikes taken in Q4FY23

Axis Direct

Escorts Kubota Ltd - Long-Term Growth Drivers Intact; Maintain BUY

Escorts Kubota Ltd (EKL) revenues for Q4FY23 were reported at Rs 2,214 Cr (up 17% YoY but down 3% QoQ), which was in line with our estimates.

Axis Direct

Escorts Kubota Ltd - Growth Outlook Intact; Maintain BUY

The growth trend in the domestic tractor industry is likely to continue in Q4FY23 and industry volumes are likely to cross peak volumes of 9 Lc...

Axis Direct

Escorts Kubota Ltd - Poised to Gain Global Footprint; Margins Seen Bottoming Out

Escorts Kubota Ltd (EKL) revenues for Q2FY23 were reported at Rs 1,884 Cr (2% beat) which grew by 12.2% YoY but down 6.5% QoQ.

Axis Direct

Result Update- Escorts

Escorts posted good set of numbers in Q4FY22 driven by a richer Tractor mix and a recovery in the Construction Equipment business. The company...

Axis Direct

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