Escorts Kubota Shares Rally: DAM Capital Upgrades to Buy

Escorts Kubota Shares Surge After Brokerage Upgrade

The Escorts-Kubota Limited invested felt the boost in the stock market today and its stock rose as much as 3.67% to Rs 3,267 in BSE. This rally comes after DAM Capital upgraded the tractor manufacturing giant from a neutral rating to a buy with a price target of Rs 3,550. The major highlighted fact in the company’s balance is that its market capitalization now reached Rs 36,557 crore.

Key Highlights of the Day’s Trading

• Stock Performance:
  • Closing Price: Rs 3,267
  • Previous Close: Rs 3,152.10
  • Intra-Day High: Rs 3,337.35 (+5.87%)
• Market Metrics:
  • Turnover: Rs 15.68 crore
  • Shares Traded: 0.48 lakh
• 52-Week Range:
  • Record High: Rs 4,422 (September 27, 2024)
  • 52-Week Low: Rs 2,647.45 (February 9, 2024)

Technical Analysis: Is Escorts Kubota Oversold?

On the technical front, the stock’s Relative Strength Index (RSI) is still at 26.2 below the oversold indicator. Also, the Escorts Kubota share price is below all leading moving averages such as the 5-day, 10-day, 20-day, 50-day, 100-day, and 150-day as well as 200-day moving averages.

Such technical positioning shows the possible fluctuations in the stock in the current short-term but at the same time allows for a closer look at the fundamentally attractive shares for those investors who looking for them for long-term perspectives.

Long-Term Performance: A Robust Track Record

Escorts Kubota has delivered impressive returns over the years:

• 2-Year Growth: 56% increase
• 3-Year Growth: 75% rally
• 1-Year Performance: 10.54% gain
• Year-to-Date (YTD): 10.13% climb

These numbers show performance stability and capability of the company during period of financial turmoil especially in auto and agricultural machinery segment.

Mixed Sentiments from Analysts

Although the upgrade has attracted investor sentiment in the issuer, other brokers commented on the move. For instance, Kotak Institutional Equities has downgraded Escorts Kubota to ‘sell’ rating and a slashed target price of Rs 3000. Kotak has prepared the said analysis with an assumption of mid-single-digit growth for tractor market in India in FY 2024-25.

Conclusion: What’s Next for Escorts Kubota?

Interestingly, the enhancement done by DAM Capital recently shows that Escorts Kubota shares have room to grow higher, particularly for the ones who are long-term traders. However, confusing signals from other brokerages and the current technical situation do not yet allow them to open long positions in the short term.

Disclaimer: The information contained in this article does not constitute investment advice. As for readership, potential investors are advised to seek independent advice in their pursuits of investing.