Escorts KubotaNSE:ESCORTS +0.65%92 ROE % is 10.36% as of Mar. 2026, which is 29% below its 10-year median of 14.56. GuruFocus rates NSE:ESCORTS with a GF Score™ of 92/100 and a GF Value™ of ₹3,931.84 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 204 Farm & Heavy Construction Machinery companies, Escorts Kubota ranks better than 89.22% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Escorts Kubota's annualized net income for the quarter that ended in Mar. 2026 was ₹12,821 Mil. Escorts Kubota's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹123,728 Mil. Therefore, Escorts Kubota's annualized ROE % for the quarter that ended in Mar. 2026 was 10.36%.
The historical rank and industry rank for Escorts Kubota's ROE % or its related term are showing as below:
NSE:ESCORTS'
s ROE % Range Over the Past 10 Years
Min: 8.07 Med: 14.56 Max: 21.4
Current: 20.74
During the past 13 years, Escorts Kubota's highest ROE % was 21.40%. The lowest was 8.07%. And the median was 14.56%.
NSE:ESCORTS's ROE % is ranked better than 89.22% of 204
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.315
vs NSE:ESCORTS: 20.74
Escorts Kubota (NSE:ESCORTS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Escorts Kubota ROE % Related Terms
Escorts Kubota ROE % Historical Data
* Premium members only.
The historical data trend for Escorts Kubota's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Farm & Heavy Construction Machinery subindustry, Escorts Kubota's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Escorts Kubota ROE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Escorts Kubota's ROE % distribution charts can be found below:
* The bar in red indicates where Escorts Kubota's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Escorts Kubota (NSE:ESCORTS) has a ROE % of 10.36% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Escorts Kubota and its competitors. This is 29% below median its historical median of 14.56. Over the past decade, Escorts Kubota's ROE % has ranged from 8.07 to 21.40. According to the industry distribution chart, Escorts Kubota ranks #22 out of 204 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 10.8%.
Is Escorts Kubota's ROE % too high?
Escorts Kubota's current ROE % of 10.36% is 29% below median its 10-year median of 14.56. Over the past 10 years, this metric has ranged from a low of 8.07 to a high of 21.40. The Farm & Heavy Construction Machinery industry median ROE % is 7.32. Escorts Kubota's value of 10.36% is 41.6% above this industry median. Based on the distribution chart, Escorts Kubota ranks #22 out of 204 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Escorts Kubota has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Escorts Kubota's ROE % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Escorts Kubota ranks #22 out of 204 companies for ROE %. This places Escorts Kubota in the top 11% of its industry — outperforming the majority of peers. The industry median ROE % is 7.32. Escorts Kubota's value of 10.36% is 41.6% above this benchmark. Historically, Escorts Kubota's own ROE % has ranged from 8.07 to 21.40 over the past decade. While the company's 10-year median is 14.56 vs. the industry median of 7.32, Escorts Kubota has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Farm & Heavy Construction Machinery company?
The median ROE % among Farm & Heavy Construction Machinery companies is 7.32, based on 204 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Escorts Kubota's current ROE % of 10.36% is 41.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Escorts Kubota and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROE % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Escorts Kubota's current ROE % is 10.36%, which is 29% below median its own 10-year median of 14.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Escorts Kubota stock overvalued right now?
Based on GuruFocus' analysis, Escorts Kubota (NSE:ESCORTS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹3,931.84, compared to a current price of ₹2,949.70 — trading 25% below its estimated fair value. The current ROE % is 10.36%, which is 29% below median its 10-year median of 14.56 and 41.6% above the Farm & Heavy Construction Machinery industry median of 7.32. Escorts Kubota's overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Escorts Kubota (NSE:ESCORTS), the current ROE % is 10.36% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Escorts Kubota (NSE:ESCORTS) Overvalued in 2026?
Based on GuruFocus' analysis, Escorts Kubota stock appears to be undervalued.
The current stock price of ₹2,949.70 is trading 25% below its estimated GF Value™ of ₹3,931.84.
GuruFocus considers Escorts Kubota to be Modestly Undervalued.
Key valuation signals for NSE:ESCORTS:
ROE %: 10.36% (29% below median its 10-year median of 14.56)
GF Value™: ₹3,931.84 vs. price of ₹2,949.70 (25% below fair value)
Industry Position: 41.6% above the Farm & Heavy Construction Machinery median (#22 of 204)
No single metric tells the full story. See the NSE:ESCORTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Escorts Kubota Ltd is engaged in manufacturing, sales, marketing, trading and customer support of Agrimachinery Products (Tractors, Harvesters, Engines, Implements, Spare parts, Oils Lubes etc.), Construction Equipment Products (Material Handling Cranes, Road Compaction and Earth moving equipment's, Spare parts etc.). It operates in two core business segments Agri Machinery and Construction Equipment. The Agri Machinery Products segment comprises the tractor business and the non-tractor business, including Agri Solutions, Engine Business, and Spare Parts & Services. The Construction Equipment segment serves the infrastructure, construction and allied sectors through a portfolio of pick-and-carry cranes, backhoe loaders, mini excavators and compactors.
92GF Score
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