ESCORTS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials Snapshot

Profitability

ROCE: 13.7% | ROE: 12.8% — solid, though not industry-leading

EPS: ₹210 — strong earnings base

PAT Qtr: ₹315 Cr vs ₹284 Cr — healthy 18.4% quarterly growth

Balance Sheet Strength

Debt-to-Equity: 0.01 — virtually debt-free, a major strength

Book Value: ₹928 — P/B ~4.08, reasonable for a growth-oriented industrial

Dividend & Cash Flow

Dividend Yield: 0.74% — modest but consistent

Cash flows are stable, supporting reinvestment and shareholder returns

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 35.6 Slightly below industry average (39.1) — fair

P/B Ratio ~4.08 Reasonable for sector

PEG Ratio 1.88 Acceptable, though not cheap

Intrinsic Value ~₹3,600–₹3,700 CMP slightly above fair value zone

Valuation is fair, not overly stretched, especially given growth momentum.

🚜 Business Model & Competitive Edge

Sector: Agricultural & construction machinery — cyclical but essential

Strengths

Strong brand portfolio: Farmtrac, Powertrac, and Kubota

Strategic partnership with Kubota enhances tech and global reach

Innovation in harvesting tech (e.g., PRO588i-G harvester) boosts farmer income and sustainability

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Growth Drivers

Rising rural mechanization

Government infra push

Export potential via Kubota’s global network

📉 Technicals & Entry Zone

Current Price: ₹3,791

DMA 50: ₹3,539 | DMA 200: ₹3,422 — bullish trend

RSI: 65.2 — nearing overbought zone

MACD: Positive — momentum intact

📌 Suggested Entry Zone: ₹3,500–₹3,600

A dip near the 50 DMA would offer a better entry with lower risk.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, low debt, and strategic global tie-ups make it a resilient long-term play.

Accumulate on dips: Ideal for investors seeking exposure to agri-mechanization and infra growth.

Let me know if you'd like a comparison with M&M or a forecast model based on tractor sales CAGR.

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