Escorts Kubota Share Price Gains; Wins Income Tax Case For AY 1986-87

Escorts Kubota, a prominent player in the farm and construction equipment sector, announced a significant legal victory on Tuesday, January 14, 2025. The Delhi High Court dismissed the appeal filed by the Income Tax Department against the company for the assessment year (AY) 1986-87.

The court order, dated January 10, 2025, was made publicly available on January 14, 2025. This development follows the company’s earlier disclosure of the matter on August 14, 2023, in compliance with SEBI Listing Regulations.

Stock Performance 

On January 15, 2025, Escorts Kubota share price traded up by 0.85% at 10:00 AM (IST) at ₹3,469.50, while the BSE benchmark Sensex gained 264.46 points to 76,764.10. Escorts Kubota’s share price reached a 52-week high of ₹4,422.00 on September 27, 2024, and a 52-week low of ₹2,647.45 on February 09, 2024. As per BSE, the total traded volume for the stock stood at 2024 shares with a turnover of ₹70.05 lakhs.

At the current price, Escorts Kubota shares are trading at a price-to-earnings (P/E) ratio of 34.18x, based on its trailing 12-month earnings per share (EPS) of ₹101.50, and a price-to-book (P/B) ratio of 3.93, according to exchange data.

Shareholding Details

As of December 31, 2024, Foreign Institutional Investors (FIIs) held a 5.89% stake in Escorts Kubota shares, while Domestic Institutional Investors (DIIs) owned 10.20%, and the promoters held 68.04%.

Q2 FY25 Performance

Escorts Kubota Ltd reported a nearly flat revenue for the second quarter, with earnings of ₹2,488.5 crore compared to ₹2,478 crore during the same period in the previous year. However, the company demonstrated strong profitability, achieving a net profit of ₹324 crore.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) were also stable at ₹265 crore, marginally up from ₹264 crore in the same quarter last year.

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