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Jhunjhunwala Portfolio Stock: These stocks have proved to be multibagger for investors in the long term. The brokerage firm says that the performance of Escorts Kubota in the second quarter has been strong. Outlook is also better. This stock is part of Jhunjhunwala portfolio.
Jhunjhunwala Portfolio Stock: After the strong quarterly results (Q2FY24) of farm and construction equipment manufacturing company Escorts Kubota, brokerage firm Nuvama has advised to buy the stock. The company's profit has doubled in the second quarter. In the long run, these shares have proved to be multibagger for investors. The brokerage firm says that the performance of Escorts Kubota in the second quarter has been strong. Outlook is also better. This stock is part of Jhunjhunwala portfolio.
Escorts Kubota: Will give 30% return in 1 year
Brokerage house Nuwama has given BUY rating on Escorts Kubota. The target price per share for 12 months perspective has been kept at Rs 4000. On November 3, 2023, the share price closed at Rs 3,077. In this way, the stock can get a strong return of about 30 percent from the current price. The stock can give around 58 percent returns in the last one year. At the same time, this share has received more than 350 percent returns in 5 years.
The brokerage house says that the company's operating profit (EBITDA) in Q2FY24 jumped 72 percent (YoY) to Rs 263 crore. EBITDA was higher than expected due to better profitability in CE/Railways. The brokerage believes that Escorts can achieve double the growth rate of Kubota Industry in the next five years. Revenue CAGR may be 23%/20% and EPS CAGR may be 44%/33% during FY23–26E/FY23-28E.
Escorts Kubota: How were the Q2 results?
Escorts Kubota's consolidated net profit more than doubled to Rs 223 crore in the July-September 2023 quarter. The company has made huge profits due to strong sales in the construction and railway equipment segments. There was a profit of Rs 99 crore in the second quarter of the last financial year. The total income of the company has increased to Rs 2154 crore, which was Rs 1969 crore a year ago. The company's tractor sales during the quarter stood at 22,024 units. Which was 23,703 units in the September quarter a year ago.
Escorts is included in the Kubota Jhunjhunwala portfolio. It is included in the portfolio of veteran market investor Rakesh Jhunjhunwala. After his death, his wife Rekha Jhunjhunwala is his portfolio. Rekha Jhunjhunwala holds 1.6 per cent stake (1,790,388 equity shares) in Escorts Kubota as of September 203 quarter. Its value is Rs 550.8 crore. Rekha Jhunjhunwala currently has 25 shares in her portfolio, whose net worth is more than Rs 35,237.7 crore.
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