Street View- Brokerages flag margin pressure, weak tractor demand at India's Escorts Kubota
BUZZ-Street View- Brokerages flag margin pressure, weak tractor demand at India's Escorts Kubota ** India's Escorts Kubota ESCO.NS warned of a double-digit decline in tractor industry volumes in H2FY27, following about 21% y/y decline in co's Q2 profit
** Shares of the company fall as much as 1.48% to 2,387.80 rupees
BROKERAGES FLAG MARGIN PRESSURE, WEAK DEMAND
** Systematix ("hold", TP cut to 2,337 rupees from 2,926 rupees) cuts FY27-FY28 earnings estimates by 11.3% each, citing cost inflation and weaker tractor demand
** BOB Capital Markets (upgrades to "hold", TP cut to 2,529 rupees from 2,869 rupees) expects margin pressure to persist through Q3 despite planned price hikes
** Motilal Oswal ("neutral", TP: 2,200 rupees) cuts FY27/FY28 earnings estimates by 8%/3%, citing a weaker tractor outlook and delayed margin recovery
** Centrum ("buy", TP: 2,700 rupees) says strong pricing lifted revenue above estimates, but higher input and operating costs weighed on margins
(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))
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