Motilal Oswal has maintained its Neutral rating on Escorts Kubota, raising the target price slightly to ₹3,380 from ₹3,327 earlier. The brokerage noted that while tractor margins have improved and the overall tractor industry outlook remains positive, continued market share erosion for Escorts is a key concern.
The company expects the tractor industry to clock 4–5% year-on-year growth in FY26, and Escorts anticipates some volume growth in the segment. However, recovery in the construction equipment (CE) business may be gradual due to the impact of sharp price hikes following new emission norms.
Despite these challenges, Motilal Oswal highlighted that the stock is trading at ~32x/29x FY26E/27E EPS, which appears fairly valued at current levels. The firm continues to monitor growth traction and competitive dynamics in both the domestic tractor and CE segments.
Disclaimer: The views and recommendations in this article are those of Motilal Oswal and do not represent the opinion of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
