InCred Equities - Escorts Kubota Ltd

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	101,870	112,478	125,643	152,534
Operating EBITDA (Rsm)	11,778	13,692	15,729	18,549
Net Profit (Rsm)	11,100	24,654	13,607	15,845
Core EPS (Rs)	101.2	121.8	121.6	141.6
Core EPS Growth	19.5%	20.3%	(0.1%)	16.4%
FD Core P/E (x)	33.19	14.94	27.08	23.25
DPS (Rs)	28.0	35.0	40.0	50.0
Dividend Yield	0.85%	1.06%	1.21%	1.52%
EV/EBITDA (x)	30.34	26.24	22.95	19.60
P/FCFE (x)	197.13	192.93	128.51	124.43
Net Gearing	(10.7%)	(7.3%)	(5.6%)	(3.4%)
P/BV (x)	3.55	2.96	2.76	2.56
ROE	11.4%	11.9%	10.5%	11.4%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	101,870	112,478	125,643	152,534
Gross Profit	29,707	33,406	37,944	45,455
Operating EBITDA	11,778	13,692	15,729	18,549
Depreciation And Amortisation	(2,426)	(2,729)	(3,073)	(3,509)
Operating EBIT	9,352	10,963	12,656	15,040
Financial Income/(Expense)	(270)	(200)	(160)	(125)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	4,584	5,042	5,647	6,212
Profit Before Tax (pre-EI)	13,666	15,805	18,143	21,127
Exceptional Items	(271)	12,800
Pre-tax Profit	13,395	28,605	18,143	21,127
Taxation	(2,295)	(3,951)	(4,536)	(5,282)
Exceptional Income - post-tax
Profit After Tax	11,100	24,654	13,607	15,845
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	11,100	24,654	13,607	15,845
Recurring Net Profit	11,325	13,622	13,607	15,845
Fully Diluted Recurring Net Profit	11,325	13,622	13,607	15,845

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	11,778	13,692	15,729	18,549
Cash Flow from Invt. & Assoc.
Change In Working Capital	3,901	(427)	387	(3,193)
(Incr)/Decr in Total Provisions	(3,923)	337	300	300
Other Non-Cash (Income)/Expense
Other Operating Cashflow	(271)	12,800
Net Interest (Paid)/Received	4,314	4,842	5,487	6,087
Tax Paid	(2,710)	(3,951)	(4,536)	(5,282)
Cashflow From Operations	13,089	27,293	17,367	16,461
Capex	(1,133)	(12,162)	(5,000)	(6,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(6,453)	(13,221)	(9,500)	(7,500)
Cash Flow From Investing	(7,586)	(25,383)	(14,500)	(13,500)
Debt Raised/(repaid)	(3,634)
Proceeds From Issue Of Shares	1,670	0		0
Shares Repurchased
Dividends Paid	(3,133)	(3,916)	(4,475)	(5,594)
Preferred Dividends
Other Financing Cashflow	(1,181)
Cash Flow From Financing	(6,277)	(3,916)	(4,475)	(5,594)
Total Cash Generated	(775)	(2,006)	(1,608)	(2,633)
Free Cashflow To Equity	1,869	1,910	2,867	2,961
Free Cashflow To Firm	5,773	2,110	3,027	3,086

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	11,140	9,134	7,526	4,893
Total Debtors	13,798	13,867	12,048	14,627
Inventories	13,439	13,867	16,179	19,641
Total Other Current Assets	13,164	13,685	14,485	15,285
Total Current Assets	51,541	50,553	50,237	54,445
Fixed Assets	24,108	31,378	33,305	35,796
Total Investments	56,410	69,410	78,410	85,410
Intangible Assets
Total Other Non-Current Assets
Total Non-current Assets	80,517	100,788	111,715	121,205
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	16,263	16,332	17,211	20,059
Other Current Liabilities	7,189	7,689	8,189	8,689
Total Current Liabilities	23,451	24,021	25,400	28,748
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities
Total Provisions	2,643	2,780	2,880	2,980
Total Liabilities	26,094	26,801	28,279	31,727
Shareholders Equity	103,802	124,540	133,672	143,924
Minority Interests
Total Equity	103,802	124,540	133,672	143,924

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	4.7%	10.4%	11.7%	21.4%
Operating EBITDA Growth	4.0%	16.3%	14.9%	17.9%
Operating EBITDA Margin	11.6%	12.2%	12.5%	12.2%
Net Cash Per Share (Rs)	99.57	81.64	67.27	43.73
BVPS (Rs)	927.80	1,113.16	1,194.78	1,286.41
Gross Interest Cover	34.60	54.82	79.10	120.32
Effective Tax Rate	17.1%	13.8%	25.0%	25.0%
Net Dividend Payout Ratio	27.5%	33.0%	32.9%	35.3%
Accounts Receivables Days	50.93	44.89	37.64	31.91
Inventory Days	75.87	63.02	62.53	61.05
Accounts Payables Days	82.40	75.23	69.80	63.52
ROIC (%)	19.3%	20.0%	19.5%	22.3%
ROCE (%)	9.2%	9.6%	9.8%	10.8%
Return On Average Assets	9.0%	8.5%	8.8%	9.4%

(91) 22 4161 1541 pramod.amthe@incredresearch.com

(91) 22 4161 1552 ravi.gupta@incredresearch.com

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Market Data

Source: Bloomberg