#ROCE

In FY25, the ROCE declined by few bps on account of increased capital employed. In FY24, there was an increase in ROCE to 21.8% owing to rise in PBIT.

#ROE

In FY25, the ROE declined to 15% owing to increased net worth. ROE in FY24 increased on a YoY basis and stood at 16.8%. The expansion was on account of rise in net profit on a YoY basis.

#COMPANY #POTENTIAL

• The PV industry registered sales volume (domestic) of ~43 lakh units in FY25 v/s 42.2 lakh units in FY24. (Source: Siam). Contribution of sales across segments in India’s PV market was 55% for SUVs, 24% hatchbacks, 9% sedans, 9% MPVs and ~3% vans in FY25. • Exports in PV industry in FY25 was 7.7 lakh units v/s 6.6 lakh units in FY24, an increase of 15% YoY. • Powertrain mix in FY25 was as follows: 65% petrol, 11% diesel, 20% CNG, Strong Hybrid Electric Vehicles at 2% and BEV at 2% v/s 63% petrol, 18% diesel, 15% CNG, 2% strong hybrid electric vehicle and 2% battery electric vehicle in FY24. • India’s EV sales crossed 20 lakh units in FY25, led by two-wheelers (~58%), followed by three-wheelers (~35%), four-wheelers (~4.5%), and buses (~0.2%). Total electric vehicles sales volume in FY24 was 16,70,736 units, of which 9,44,126 units comprised two wheelers, 6,32,485 three wheelers, 90,432 four wheelers and 3,693 buses. (Source: SMEV) schemes to sustain volume growth and defend share. • Maruti Suzuki India continues to lead the domestic passenger vehicle market with a dominant ~40% market share, followed by M&M. Competitive intensity has been rising, with OEMs ramping up product launches, marketing efforts, and attractive financing • While the near-term environment may be tempered by regulatory headwinds and price increases, the structural growth story remains intact. Rising disposable incomes, improving road infrastructure, and a growing preference for personal mobility are expected to support sustained demand over the long term. Additionally, the electric vehicle (EV) segment offers meaningful upside, underpinned by increased OEM investments in product development and charging infrastructure, as well as supportive government policy

#COMPANY #OUTLOOK

• It targets to achieve sale of ~7,50,000 units from exports by FY30. The company achieved a milestone of producing 2 million units in FY25. It continued to be the top exporter of passenger vehicles in India. The company expects strong sales in exports in FY26 as well and grow by at least 20%. • As the use of electric vehicles grows, encouraging the adoption of strong hybrid technology, CNG, ethanol, and biogas-powered cars becomes crucial for a more efficient transition. Hybrid cars significantly enhance fuel efficiency by 35-45% and reduce carbon and greenhouse gas emissions by 25-35%, making them a highly efficient alternative to conventional vehicles. CNG cars, while not as clean as hybrids, are still more efficient than petrol or diesel vehicles and don’t require oil. Additionally, biogas presents a highly environmental sustainability. efficient, renewable energy solution derived from agricultural and organic waste, offering a carbon-negative impact and improving • To increase the adoption for EVs it has created an “e for me” initiative. Smart home chargers will be provided along with seamless installation support, ensuring convenience for customers. In the first phase, a vast network of fast-charging stations will be established across the top 100 cities, with plans for further expansion. The goal of the company is to ensure that within these cities, charging points are accessible every 5-10 km, making EV charging effortless. • In FY26, it plans to launch e-Vitara and another SUV. The e-Vitara would have two battery options of 49kWh and 61kWh, with a freedom to drive more than 500 km on a single charge. The e-Vitara will be showcased through a phased rollout across Nexa dealerships. The company plans to launch the e-Vitara in H1 FY26, targeting volumes of ~70,000 units, with majority share expected to come from export markets.

Economies of scale are expected to benefit all plants collectively, as sourcing is standardized across locations. The company is also working to increase production flexibility, enabling more lines to manufacture a wider range of models. Upcoming manufacturing lines are being designed to support EV production as well. Given the additional weight of EVs due to batteries, some modifications are needed on the production lines. However, the company is ensuring the lines remain flexible enough to accommodate these changes. • The company anticipates the finalization of CAFE (Corporate Average Fuel Efficiency) III regulations in the near term. Industrywide discussions with the government are ongoing, and the policy is expected to be announced within the next month.

Maruti Suzuki 11000-12300
Expected level 16000
Support 9800

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Escorts Kubota Limited Company Details Report

Escorts Kubota Limited is one of the leading engineering conglomerates in India, headquartered in Faridabad, Haryana. On 11th Apr 2022, Kubota Corporation, Japan became the joint promoter of the company leading to a name change from Escorts Limited to Escorts Kubota Limited. It has diversified business in three different segments mainly Agri machinery (AM), Construction Equipment (CE) and Railway Equipment. In FY24, the company had over 1,200 dealers. Company’s market share in domestic tractor market stood at 10.6% in FY24. In Escorts Agri Machinery (EAM), it offers tractors in the range of 12 HP (horse-power) to 75 HP in the domestic market. The company is operating with three plants located in Faridabad and Haryana, with a current production capacity of over 1,20,000 tractors p.a. Additionally, it has a plant in Poland which is its 100% subsidiary, having an installed capacity of 2,500 tractor p.a. and the company also has 50,000 capacity manufacturing plant under joint venture with Kubota. The company provides tractors and crop solutions across 75 countries. Company’s product offerings include tractors, engines, spare parts and lubes. Its brands include Farmtrac, Powertrac, Steeltrac, Digitrac, Farmpower & E-Kubota. Until FY24, EKL's agri machinery division included the Engine, Implement, and Services & Spare parts businesses. As of 1st April 2024, these have been restructured into separate divisions. It is preparing to launch a new World Maxx series under the Farmtrac brand, which will help it reposition in the 50 HP and above premium segment. In Escorts Construction Equipment (ECE), it manufactures equipment for material handling, road building and earthmoving sectors to meet the emerging needs of the country’s infrastructure development projects. It is operating with a plant in India at Ballabhgarh, Haryana. It has an annual production capacity of 10,000 units. In Railway Equipment Division (RED), it offers a wide range of products that aid in the modernisation of Indian Railways. On 22nd August 2024, NCLT approved the Scheme of Amalgamation among and between Escorts Kubota India Private Limited (EKI), Kubota Agriculture Machinery India Private limited (KAI) and the Company (Amalgamated Company). With the merger of JVs, product revenue has been diversified with non-tractor revenue accounting for around 17% of overall AM revenue compared to 10%-12% pre-merger. Non-tractor business comprises of Rotavators, Harvester, rice transplanter, Bailers, Sprayers etc. The financial results of the company have been restated to reflect the impact of the amalgamation.

#SALES #GROWTH

In FY24, total revenue was ₹8,850 cr wherein its agri machinery business revenue stood at ₹6,110 cr (v/s ₹6,316 cr in FY23) and tractor sales stood at 95,858 units in FY24 (v/s 1,03,290 units in FY23). The company exported 5,619 tractors in FY24. Less than 40 hp : greater than 40 hp domestic sales ratio was at 36:64. Construction equipment business revenue grew by 45% YoY to ₹1,710 cr with volume expansion of 42.2% i.e., 6,548 units in FY24; railway equipment business revenue grew by 12.9% YoY to ₹950 cr. In 9M FY25, the net sales was ₹7,747 cr v/s ₹7,561 cr an increased of 2.5% YoY. Of this, revenue from agri equipment was ₹6,500 cr (v/s ~₹6,200 cr), and construction equipment at ~₹1,200 cr (v/s ₹1,300 cr). It sold 85,762 units in 9M FY25 v/s 85,371 units in 9M FY24 and 3,159 units in export market which declined by 26% YoY. Less than 40 HP:greater than 40 HP tractor sales ratio was 33:67. Export through Kubota channel was 22% in 9M FY25. In the CE segment it sold, 4,765 units that declined by 8% YoY.

#EBITDA #GROWTH

In FY24, EBITDA stood at ₹1,167 cr and observed an increase of 50% YoY. This was on account of price hikes and benign raw material cost. The EBIT for the agri machinery business was ₹778 cr, for construction equipment business at ₹159 cr and for RED at ₹179 cr for the year. In 9M FY25, EBITDA stood at ₹923 cr compared to ₹920 cr in 9M FY24. Despite steady top-line growth, agri business profitability has declined. The harvester business performed well this quarter, however, as harvesters are currently imported & traded rather than manufactured domestically, their profitability is lower compared to locally produced components leading to higher purchases of stock in trade for the period.

#PAT #GROWTH

In FY24, the net profit was ₹1,033 cr and increased by 60% YoY. This rise can be attributed to higher other income (₹399 cr in FY24 v/s ₹280 cr in FY23) and operating profits. Tax rate for the year was 25%. In 9M FY25, the net profit was ₹900 cr v/s ₹766 in 9M FY24 an increase of 17.5% YoY. The period reflects a one-time tax reduction due to the impact of taxes related to the amalgamation of companies, which is not expected to recur.

#EBITDA #MARGIN

In FY24, the EBITDA margin stood at 13.2%. On a YoY basis, the increase can be attributed to benign raw material cost and price hikes undertaken by the company for the years. In 9M FY25, the EBITDA margin was 11.9% v/s 12.2% in 9M FY24 and declined by 30 bps YoY. Gross margin reduced by 230 bps majorly owing to higher purchase of stock in trade (company is importing parts & harvesters). EBIT margin from agri machinery and construction equipment was 10.4% (v/s11% in 9M FY24), 10.2% (v/s 8.5% in 9M FY24), respectively. Seasonal discounting from September to November also affected margins. Margins are expected to improve gradually next year, though no significant increase is anticipated, unless higher volumes drive operating leverage. Cost optimization efforts will continue to enhance profitability.

#PAT #MARGIN

In FY24, the PAT margin was 11.7% an increase of 403 bps YoY, owing to rise in other income and operating profits. In 9M FY25, the PAT margin was 11.6% v/s 910.1% in 9M FY24.

#ROCE

In FY24, the ROCE stood at 16.3% on account of rise in PBIT. Capacity utilization in 9M FY25 was: ~70% for agri machinery and ~75% for construction equipment.

COMPANY POTENTIAL

• In FY24, the domestic tractor industry saw a 7.4% decline in sales, falling to 8.8 lakh tractors from 9.6 lakh in FY23. This decrease was primarily due to erratic and inadequate rainfall, which caused delayed crop harvests and reduced sowing, adversely affecting rural cash flows and compounding the impact of a high base from the previous year. Despite the subdued performance in the latter half of FY24, recent trends suggest a shift towards a more positive industry outlook. Exports also experienced a decline, with tractor volumes dropping by 21.4% to 0.98 lakh from 1.25 lakh in FY23. • In 9M FY25, the domestic tractor industry sales volume was 7.4 lakh units v/s 7 lakh units in 9M FY24. In the export market, the volume stood at 71.3k units v/s 71.4k units for 9M FY24. In Q3 FY25, the domestic industry sales volume was 2.7 lakh units as compared to 2.4 lakh units in Q3 FY24; while in exports market it was 22.1k units in Q3 FY25 v/s 21.3k units in Q3 FY24. FY24. In Q3 FY25, the same stood at 22,800 units v/s 19,900 units in Q3 FY24. • For 9M FY25, the construction equipment (served industry) industry sales volume stood at 54,300 units v/s 51,700 units in 9M • The size of India’s construction equipment market is estimated at $7.3 Billion (~₹61,000 cr) in 2024. In FY24, the industry sales for construction equipment was ~71,500 units v/s 55,400 units in FY23 an increase of 29% YoY, of which backhoe loaders were ~51,400 units, ~14,400 units constituted cranes and ~5,800 units were compactors. The major factors driving the boost in India’s construction equipment market include improved road construction infrastructure, and an increasing urbanization rate. With better road transportation infrastructure and a rise in urban population, there is a greater demand for convenience in personal mobility, healthcare, sanitation, and water supply, among others.

COMPANY OUTLOOK

• On 23rd October 2024, EKL entered into a Business Transfer Agreement with Sona BLW Precision Forgings Limited to transfer its Railway Equipment Business Division (RED) as a going concern through a slump sale. The transaction involves a lump sum cash consideration of ₹1,600 cr, subject to the terms outlined in the agreement. The divestment is contingent on customary closing conditions, including obtaining required approvals and permissions. The company expects this divestment to get completed within 1 year. • During Q3 FY25, the Railway Equipment Division (RED) has been classified under discontinued operations, with previous periods reclassified accordingly as per Ind AS 105 – Non-current Assets Held for Sale and Discontinued Operations. • The board has approved the sale and transfer of ~33,000 sq yards of land adjacent to the RED to Sona Comstar for ~₹110 cr. Currently occupied by the company's spare parts division, the site will be vacated and the division will be relocated to a new facility before the transaction is finalized. • Post-September, industry growth has been exceptional in the South, West, and key opportunity markets like Chhattisgarh, Odisha, and Jharkhand. With significant untapped potential in these regions, efforts have been initiated to expand market coverage. New products have been introduced for these markets, and a gradual improvement in market share is expected over the next 3 to 6 months. Regarding Kubota, while it has a strong presence in the South and West, these regions had been on a declining trend for over a year, significantly impacting dealer profitability. • An expression of interest (EOI) was submitted to the UP government for land acquisition, initially expected by January-end but now delayed. The process is ongoing, and further formalities will proceed once the government finalizes the acquisition.

Channel inventory has been reduced, and domestic market share in Q3 FY25 stands at 11.8%. In line with the strategy of offering innovative products, the recently launched Promaxx Series (primarily targeted at the western market, including Gujarat, Maharashtra, and select regions where presence is currently limited, also in Chhattisgarh, Odisha, and parts of Madhya Pradesh) under the Farmtrac brand in the 30-50 HP category delivered strong performance with advanced technology, ensuring superior comfort and versatility for various applications. The network currently includes ~1,540 exclusive dealers. • For FY25, the domestic tractor industry is anticipated to witness growth of ~6%-7%. • In Q3 FY25, non-tractor segment that includes, agri machinery business, engine business, and the service and spare parts business accounted for 21% of agri machinery revenue, compared to 19% in Q3 FY24 and 18% in Q2 FY25. • From January 2025, the CE industry has transitioned to higher emission norms. During Q3 FY25, a range of Stage 5 emissioncompliant products was introduced, along with the unveiling of a new entry-level Hydra crane and the BLX 75 backhoe loader. These additions were made under the E-Kubota brand. Looking ahead, a temporary volume impact is expected in the CE industry due to price escalation following the transition to BS-V. Models shifting from BS-III to BS-V will see a 10%+ cost increase, while those moving from BS-IV to BS-V will experience a 5%-6% rise. Given this steep hike, a significant profitability surge is not anticipated. However, over the year, cost recovery is expected, leading to a flattish to slightly positive profitability growth. FY26 is projected to remain stable rather than see a decline. • Through Kubota channel, the company is mostly exporting to Europe. In FY26, the growth is expected to exceed 20%, supported by a low base this year and improving demand from European markets, leading to stronger export performance. Export margins are generally in line with domestic margins, despite a slightly lower contribution. While realizations are higher in exports, current CASE STUDY exchange rates have balanced the margin difference.

Escorts Kubota Limited 2900-3260
Expected level 4000
Support 2500

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14 Small and Mid cap companies with PE less than 20 and consistent sales growth

1. Ganesh Housing Corporation Ltd:

🔸P/E: 15.3
🔸ROCE: 45.0 %
🔸ROE: 41.6 %
🔸OPM: 72.2 %
🔸Sales Growth 3 Years: 74%
🔸Profit Growth 3 Years: 85%



2. Dynacons Systems & Solutions Ltd:

🔸P/E: 17.8
🔸ROCE: 44.2 %
🔸ROE: 41.2 %
🔸OPM: 8.11 %
🔸Sales Growth 3 Years: 33%
🔸Profit Growth 3 Years: 80%

3. EMS Ltd:

🔸P/E: 18.9
🔸ROCE: 29.3 %
🔸ROE: 22.9 %
🔸OPM: 27.7 %
🔸Sales Growth 3 Years: 34%
🔸Profit Growth 3 Years: 27%


4. J Kumar Infraprojects Ltd:

🔸P/E: 13.1
🔸ROCE: 18.4 %
🔸ROE: 13.2 %
🔸OPM: 14.5 %
🔸Sales Growth 3 Years: 24%
🔸Profit Growth 3 Years: 73%


5. Pokarna Ltd:

🔸P/E: 16.2
🔸ROCE: 18.3 %
🔸ROE: 15.8 %
🔸OPM: 32.0 %
🔸Sales Growth 3 Years: 33%
🔸Profit Growth 3 Years: 45%


6. Lumax Auto Technologies Ltd:

🔸P/E: 19.8
🔸ROCE: 17.7 %
🔸ROE: 17.9 %
🔸OPM: 12.3 %
🔸Sales Growth 3 Years: 37%
🔸Profit Growth 3 Years: 41%


7. Lumax Industries Ltd:

🔸P/E: 17.6
🔸ROCE: 17.2 %
🔸ROE: 17.6 %
🔸OPM: 7.94 %
🔸Sales Growth 3 Years: 23%
🔸Profit Growth 3 Years: 88%

8. Ashapura Minechem Ltd:

🔸P/E: 14.8
🔸ROCE: 17.2 %
🔸ROE: 24.3 %
🔸OPM: 12.7 %
🔸Sales Growth 3 Years: 32%
🔸Profit Growth 3 Years: 42%

9. Mangalore Chemicals & Fertilizers Ltd:

🔸P/E: 15.6
🔸ROCE: 16.9 %
🔸ROE: 18.2 %
🔸OPM: 9.59 %
🔸Sales Growth 3 Years: 21%
🔸Profit Growth 3 Years: 32%


10. Sigachi Industries Ltd:

🔸P/E: 17.4
🔸ROCE: 16.7 %
🔸ROE: 16.4 %
🔸OPM: 18.9 %
🔸Sales Growth 3 Years: 27%
🔸Profit Growth 3 Years: 24%


11. Capacite Infraprojects Ltd:

🔸P/E: 14.4
🔸ROCE: 16.1 %
🔸ROE: 9.44 %
🔸OPM: 17.7 %
🔸Sales Growth 3 Years: 30%
🔸Profit Growth 3 Years: 330%


12. Five-Star Business Finance Ltd:

🔸P/E: 19.2
🔸ROCE: 15.8 %
🔸ROE: 17.5 %
🔸OPM: 74.4 %
🔸Sales Growth 3 Years: 28%
🔸Profit Growth 3 Years: 33%


13. MAS Financial Services Ltd:

🔸P/E: 15.0
🔸ROCE: 11.7 %
🔸ROE: 15.2 %
🔸OPM: 75.4 %
🔸Sales Growth 3 Years: 27%
🔸Profit Growth 3 Years: 20%


14. Deep Industries Ltd:

🔸P/E: 17.6
🔸ROCE: 10.3 %
🔸ROE: 8.73 %
🔸OPM: 40.2 %
🔸Sales Growth 3 Years: 30%
🔸Profit Growth 3 Years: 26%

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Page Industries Limited Company Details Report

Page Industries Limited is a leading player in the premium inner-wear and athleisure market. The company is an exclusive licensee for JOCKEY International Inc (USA) for manufacturing, distribution & marketing in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan & UAE. The products include innerwear, athleisure, socks for men & women, thermal, towel, caps & face mask. Additionally, the company has an exclusive license for Speedo International Limited for manufacturing, distribution & marketing in India (based in Nottingham, UK) which is a manufacturer & distributor of swimwear & swimming accessories including water shorts, apparel & footwear. The company has license with Jockey International till 2040. Jockey brand accounts for majority of the revenue. The products are sold through Exclusive Brand Outlets (EBO), Large Format Stores (LFS) and Multi Brand Outlets (MBO), as well as online (own website as well as other partners like Myntra, Amazon, Zivame, etc.). Through MBO, it has 3,956 distributors across 2,713 cities and towns, covering a retail network of 1,10,826 outlets. In the EBO segment, it has 1,453 stores, which includes 36 exclusive women’s stores and 48 exclusive juniors’ stores. The Key Department Store format is driven through partnerships with 15 leading retail chains, resulting in a footprint of 1,216 stores and 1,803 points of sale nationwide. The company has 13 operational EBOs outside India, ten in UAE and one each in Sri Lanka, Qatar and Oman, with another work-in progress store in Nepal. As on 31st Mar 2025, Speedo brand was available in 1,096+ stores and 36 EBS across 150+ cities in India. The company has a production capacity of 28 cr pieces (including outsourcing) and has 15 manufacturing units (14 in Karnataka and 1 in Tamil Nadu).

Revenue Mix