External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Resurfaced chip availability concerns amid geopolitical issues Russia is the largest producer (~40% share in global production) of rare earth metal palladium, which is used in manufacturing of semiconductor.</li><li>Further Ukraine is the largest producer of neon gas, which is another important component for semiconductor (chip) manufacturing.</li><li>Therefore, any supply chain disruption of these critical raw materials in this space would impact the availability of chips, resulting in an adverse impact on OEM volumes and associated productivity.</li></ul><div class="content-highlight"><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></div>

Resurfaced chip availability concerns amid geopolitical issues Russia is the largest producer (~40% share in global production) of rare earth metal palladium, which is used in manufacturing of semiconductor.Further Ukraine is the largest producer of neon gas, which is another important component for semiconductor (chip) manufacturing.Therefore, any supply chain disruption of these critical raw materials in this space would impact the availability of chips, resulting in an adverse impact on OEM volumes and associated productivity.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.

Growth, Margin Concerns Resurface for Auto Sector Amid Prevailing Geopolitical Crises

External broker reports(aggregated public sources), Axis Direct

Axis Direct

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

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Escorts Kubota Limited / Equity Bottom-Up

<ul><li>Escorts Q3FY22 results were broadly in line with our expectations, driven by a richer Tractor mix and a recovery in the Railway business in Q3FY22</li><li>The company reported total revenue of Rs 1,957 Cr (our estimate – Rs 1,911 Cr) against Rs 2,017 Cr in Q3FY21, a marginal de-growth of 3% YoY</li><li>We maintain our HOLD rating on the stock keeping our target price unchanged at Rs 1,900, valuing the company at 19x FY24E P/E</li></ul><div class="content-highlight"><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></div>

Escorts Q3FY22 results were broadly in line with our expectations, driven by a richer Tractor mix and a recovery in the Railway business in Q3FY22The company reported total revenue of Rs 1,957 Cr (our estimate – Rs 1,911 Cr) against Rs 2,017 Cr in Q3FY21, a marginal de-growth of 3% YoYWe maintain our HOLD rating on the stock keeping our target price unchanged at Rs 1,900, valuing the company at 19x FY24E P/EContent 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: Results In Line with Expectations; Muted Outlook On Tractor Industry

<ul><li>Escorts Limited (Escorts) and Kubota Corporation (Kubota) have decided to strengthen their partnership in the tractor and machinery segments</li><li>We believe Escorts’ partnership with Kubota would provide the company with an opportunity to gain market share in the medium term</li><li>We maintain our HOLD rating on the stock. We revise our Target Price to Rs 1,900 (Rs 1,450 earlier) based on 19X FY24E EPS (15X FY24E EPS earlier).</li></ul><div class="content-highlight"><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></div>

Escorts Limited (Escorts) and Kubota Corporation (Kubota) have decided to strengthen their partnership in the tractor and machinery segmentsWe believe Escorts’ partnership with Kubota would provide the company with an opportunity to gain market share in the medium termWe maintain our HOLD rating on the stock. We revise our Target Price to Rs 1,900 (Rs 1,450 earlier) based on 19X FY24E EPS (15X FY24E EPS earlier).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 Partnership To Drive Long Term Growth

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<p>ESC's board on 18 Nov'21 approved sale of ~6.4% stake in the company to Japan's Kubota Corp. for ~INR18.7b (at INR2,000/share), taking Kubota's stake to ~16.4% (after the extinguishment of the first round of treasury shares). This will trigger an open offer by Kubota for a 26% stake in ESC. Assuming the successful open offer and cancellation of all treasury shares, Kubota's stake in ESC will rise to 53.5%. Its stake will rise further as it is consolidating its Indian operations under ESC by merging two JVs in India with ESC.</p><div class="content-highlight"><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></div>

ESC's board on 18 Nov'21 approved sale of ~6.4% stake in the company to Japan's Kubota Corp. for ~INR18.7b (at INR2,000/share), taking Kubota's stake to ~16.4% (after the extinguishment of the first round of treasury shares). This will trigger an open offer by Kubota for a 26% stake in ESC. Assuming the successful open offer and cancellation of all treasury shares, Kubota's stake in ESC will rise to 53.5%. Its stake will rise further as it is consolidating its Indian operations under ESC by merging two JVs in India with ESC.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.

Kubota to hike stake via preferential allotment, open offer

<ul><li>Escorts is India’s fourth largest tractor maker (11.3% FY21 market share) and also serves the domestic construction equipment, railways space.</li><li>Escorts to issue 93.64 lakh equity shares via preferential allotment to Kubota at a price of Rs2,000/share with total inflow pegged at Rs1873 crore</li><li>We value Escorts at revised SOTP-based TP of Rs 2,200 (23x P/E on core FY23E EPS, 15% discount on treasury shares; previous TP Rs 1,900)</li></ul><div class="content-highlight"><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></div>

Escorts is India’s fourth largest tractor maker (11.3% FY21 market share) and also serves the domestic construction equipment, railways space.Escorts to issue 93.64 lakh equity shares via preferential allotment to Kubota at a price of Rs2,000/share with total inflow pegged at Rs1873 croreWe value Escorts at revised SOTP-based TP of Rs 2,200 (23x P/E on core FY23E EPS, 15% discount on treasury shares; previous TP Rs 1,900)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 Takes a Co-Driver Seat, Now a Joint Promoter

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)

Growth, Margin Concerns Resurface for Auto Sector Amid Prevailing Geopolitical Crises

Resurfaced chip availability concerns amid geopolitical issues Russia is the largest producer (~40% share in global production) of rare earth metal...

ICICI Securities Limited

Escorts: Results In Line with Expectations; Muted Outlook On Tractor Industry

We maintain our HOLD rating on the stock keeping our target price unchanged at Rs 1,900, valuing the company at 19x FY24E P/E.

Axis Direct

Escorts: Kubota Partnership To Drive Long Term Growth

We maintain our HOLD rating on the stock. We revise our Target Price to Rs 1,900 (Rs 1,450 earlier) based on 19X FY24E EPS (15X FY24E EPS earlier).

Axis Direct

Kubota to hike stake via preferential allotment, open offer

ESC's board on 18 Nov'21 approved sale of ~6.4% stake in the company to Japan's Kubota Corp. for ~INR18.7b (at INR2,000/share), taking Kubota's...

Motilal Oswal

Escorts: Kubota Takes a Co-Driver Seat, Now a Joint Promoter

Escorts is India’s fourth largest tractor maker (11.3% FY21 market share) and also serves the domestic construction equipment, railways space.

ICICI Securities Limited

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