Need To Know: Analysts Are Much More Bullish On Escorts Kubota Limited (NSE:ESCORTS) Revenues

Shareholders in Escorts Kubota Limited (NSE:ESCORTS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Escorts Kubota will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Escorts Kubota from its 14 analysts is for revenues of ₹107b in 2025 which, if met, would be a substantial 20% increase on its sales over the past 12 months. Per-share earnings are expected to rise 6.1% to ₹112. Before this latest update, the analysts had been forecasting revenues of ₹97b and earnings per share (EPS) of ₹104 in 2025. Sentiment certainly seems to have improved in recent times, with a nice gain to revenue and a slight bump in earnings per share estimates.

View our latest analysis for Escorts Kubota

Despite these upgrades, the analysts have not made any major changes to their price target of ₹3,561, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Escorts Kubota's past performance and to peers in the same industry. The analysts are definitely expecting Escorts Kubota's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Escorts Kubota is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Escorts Kubota.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Escorts Kubota going out to 2027, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.