Equity Analysis /
India

IN : Escorts Ltd - Slow revival in construction, railway divisions

    Pramod Amthe
    Hitesh Thakurani
    CGS-CIMB
    14 May 2022
    Published by

    4QFY22 PBT was in line with our estimate, as higher other income helped overcome an 8% miss on EBITDA. EPS was flat qoq at Rs20. Slow recovery in profitability of construction and railway divisions and the tractor segment’s market share loss is an area of concern. Stock price correction post Kubota open offer has led to easing of P/E valuation to near five-year mean level. We maintain Hold rating on the stock.