Equity Analyst - Fundamental & Thematic, Sree Capital

Sreemant Dudhoria,CFA

Equity Analyst - Fundamental & Thematic

Fundamental Research on Listed Indian Companies

Sree Capital

Sree Capital is a platform to share fundamental research on listed Indian companies. We do this research for our own investment

Equity Bottom-Up

Escorts Kubota Limited / Equity Bottom-Up

<ul>
<li>
 Domestic Tractor Volume Underperformance: <a href="https://www.smartkarma.com/entities/escorts-kubota-ltd" target="_blank" data-smartkarma-citation="entities:6773:1" rel="noopener">Escorts Kubota Limited (ESCORTS IN)</a>'s domestic tractor volume growth lagged the industry in Q4 FY25, impacted by an adverse geographical mix &amp; increased competitive intensity.</li>
<li>
 Construction Equipment Faces Near-Term Pressure:The CE segment saw a 12.2% YoY volume decline, impacted by weak demand and cost inflation from BS-V emission norms; management expects recovery in H2 FY26.</li>
<li>
 Valuation Remains Elevated: Despite a stable operating profile and long-term growth potential, the stock trades at a forward P/E of ~30x, limiting near-term upside amid execution and demand uncertainties.</li>
</ul>



 Domestic Tractor Volume Underperformance: Escorts Kubota Limited (ESCORTS IN)'s domestic tractor volume growth lagged the industry in Q4 FY25, impacted by an adverse geographical mix &amp; increased competitive intensity.

 Construction Equipment Faces Near-Term Pressure:The CE segment saw a 12.2% YoY volume decline, impacted by weak demand and cost inflation from BS-V emission norms; management expects recovery in H2 FY26.

 Valuation Remains Elevated: Despite a stable operating profile and long-term growth potential, the stock trades at a forward P/E of ~30x, limiting near-term upside amid execution and demand uncertainties.


Escorts Kubota: Constrained by Rich Valuation

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>In this Insight, we discuss agricultural income trends and challenges focusing on income growth and farming dynamics.</li>
<li>Declining cultivable land and rising input costs are affecting farmer incomes and crop yields.</li>
<li>Tractor OEMs remain optimistic about growth despite challenges, driven by positive macroeconomic factors and increased financing access.</li>
</ul>


In this Insight, we discuss agricultural income trends and challenges focusing on income growth and farming dynamics.
Declining cultivable land and rising input costs are affecting farmer incomes and crop yields.
Tractor OEMs remain optimistic about growth despite challenges, driven by positive macroeconomic factors and increased financing access.


India Rural Incomes | The Tide Has Yet to Turn

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ashok-leyland-ltd" target="_blank" data-smartkarma-citation="entities:20104:1" rel="noopener">Ashok Leyland (AL IN)</a> enters 2026 with strong momentum. This insight discusses the various factors that benefit the company and what will drive the margins ahead.</li>
<li>Also discussed in this note are details about company's R&amp;D initiatives to reduce cyclicality and strengthen earnings quality. </li>
<li>Finally, we discuss about valuation and the potential upside from its core business and soon to be listed - Hinduja Leyland Finance.</li>
</ul>



Ashok Leyland (AL IN) enters 2026 with strong momentum. This insight discusses the various factors that benefit the company and what will drive the margins ahead.
Also discussed in this note are details about company's R&amp;D initiatives to reduce cyclicality and strengthen earnings quality. 
Finally, we discuss about valuation and the potential upside from its core business and soon to be listed - Hinduja Leyland Finance.


2026 High Conviction: Ashok Leyland- Ready with Right Masala: Upcycle, Margin Uptick, R&D &Strong MD

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>The Indian automobile sector is at a critical juncture, with recent GST rate rationalization and the imminent 8th Pay Commission for government employees converging to create a powerful demand stimulus.</li>
<li>These policy-driven catalysts are directly addressing long-standing affordability issues, particularly in the entry-level passenger vehicle and two-wheeler segments, positioning the industry for a multi-year cyclical upswing.</li>
<li>While challenges remain, the clear legislative support and improving macroeconomic environment suggest a significant demand revival, making a fresh look at India's auto OEMs a necessity for investors.</li>
</ul>


The Indian automobile sector is at a critical juncture, with recent GST rate rationalization and the imminent 8th Pay Commission for government employees converging to create a powerful demand stimulus.
These policy-driven catalysts are directly addressing long-standing affordability issues, particularly in the entry-level passenger vehicle and two-wheeler segments, positioning the industry for a multi-year cyclical upswing.
While challenges remain, the clear legislative support and improving macroeconomic environment suggest a significant demand revival, making a fresh look at India's auto OEMs a necessity for investors.


Thematic Report on India’s Auto Boom: Is Policy the New Fuel Igniting a Cyclical Revival?

India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

<ul>
<li>The GST Council has approved rate cuts , lowering from 28-29% to 18% for 2Ws (&lt;350cc), 3Ws, CVs, tractors and small PVs, while larger cars move to 40% from 43-50%. 
</li>
<li>
Price cuts of 2–9% in mass-market vehicles could spur demand just as rural sentiment, interest rates, and fiscal transfers turn supportive, creating a multi-pronged recovery catalyst for OEMs and ancillaries.</li>
<li>The rationalization removes structural distortions, improves affordability, and positions the festive season as a turning point for sector volumes and improved margins, though premium bikes and fleet operators face headwinds.</li>
</ul>


The GST Council has approved rate cuts , lowering from 28-29% to 18% for 2Ws (&lt;350cc), 3Ws, CVs, tractors and small PVs, while larger cars move to 40% from 43-50%. 


Price cuts of 2–9% in mass-market vehicles could spur demand just as rural sentiment, interest rates, and fiscal transfers turn supportive, creating a multi-pronged recovery catalyst for OEMs and ancillaries.
The rationalization removes structural distortions, improves affordability, and positions the festive season as a turning point for sector volumes and improved margins, though premium bikes and fleet operators face headwinds.


GST Reform in Indian Auto Sector: Demand Revival Meets Margin Expansion Ahead of Festive Surge.

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: Constrained by Rich Valuation

Escorts Kubota Limited's domestic tractor volume growth lags industry in Q4 FY25; Construction Equipment segment faces pressure due to regulatory...

Sreemant Dudhoria,CFA

India Rural Incomes | The Tide Has Yet to Turn

Agricultural income trends face challenges from declining land and rising costs, but tractor OEMs remain optimistic about growth due to positive...

Pranav Bhavsar

2026 High Conviction: Ashok Leyland- Ready with Right Masala: Upcycle, Margin Uptick, R&D &Strong MD

Ashok Leyland (AL IN) poised for success in 2026 with strong earnings momentum, driven by multiple factors.Valuation and potential upside from...

Sreemant Dudhoria,CFA

Thematic Report on India’s Auto Boom: Is Policy the New Fuel Igniting a Cyclical Revival?

Recent policy changes in India, including GST rate rationalization and the 8th Pay Commission, are expected to boost demand in the automobile...

Nimish Maheshwari

GST Reform in Indian Auto Sector: Demand Revival Meets Margin Expansion Ahead of Festive Surge.

GST Council approves rate cuts, boosting demand for mass-market vehicles and creating a multi-pronged recovery catalyst for OEMs and ancillaries.

Sudarshan Bhandari

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Escorts Kubota: Constrained by Rich Valuation

​Escorts Kubota Limited's domestic tractor volume growth lags industry in Q4 FY25; Construction Equipment segment faces pressure due to regulatory...

Sreemant Dudhoria,CFA

India Rural Incomes | The Tide Has Yet to Turn

​Agricultural income trends face challenges from declining land and rising costs, but tractor OEMs remain optimistic about growth due to positive...

Pranav Bhavsar

2026 High Conviction: Ashok Leyland- Ready with Right Masala: Upcycle, Margin Uptick, R&D &Strong MD

​Ashok Leyland (AL IN) poised for success in 2026 with strong earnings momentum, driven by multiple factors.Valuation and potential upside from...

Sreemant Dudhoria,CFA

Thematic Report on India’s Auto Boom: Is Policy the New Fuel Igniting a Cyclical Revival?

​Recent policy changes in India, including GST rate rationalization and the 8th Pay Commission, are expected to boost demand in the automobile...

Nimish Maheshwari

GST Reform in Indian Auto Sector: Demand Revival Meets Margin Expansion Ahead of Festive Surge.

​GST Council approves rate cuts, boosting demand for mass-market vehicles and creating a multi-pronged recovery catalyst for OEMs and ancillaries.

Sudarshan Bhandari

Escorts Kubota Limited's domestic tractor volume growth lags industry in Q4 FY25; Construction Equipment segment faces pressure due to regulatory...

Agricultural income trends face challenges from declining land and rising costs, but tractor OEMs remain optimistic about growth due to positive...

Ashok Leyland (AL IN) poised for success in 2026 with strong earnings momentum, driven by multiple factors.Valuation and potential upside from...

Recent policy changes in India, including GST rate rationalization and the 8th Pay Commission, are expected to boost demand in the automobile...

GST Council approves rate cuts, boosting demand for mass-market vehicles and creating a multi-pronged recovery catalyst for OEMs and ancillaries.