Escorts Kubota's stock is witnessing a sharp decline on Thursday. During early trading, the stock slipped by about 9%. However, after some time, after recovery from the lower levels, the decline is now only 6%. The company has announced the sale of railway equipment business to Sona BLW. On the other hand, after this announcement, Sona BLW is seeing a rise of about 9%.

Escorts Kubota informed on Wednesday that the company has signed an agreement to transfer this business to Sona BLW Precision Forgings. Under this agreement, the railway equipment business will be transferred. The company will sell this business for ₹ 1,600 crore. The company said that it is focusing on simplifying its operations and at the same time keeping in mind the capital reallocation to increase efficiency, the company has decided to sell the railway equipment business. Sona BLW is expanding its broader mobility business. The company is also preparing to increase clean mobility product offerings by adding railway component business to its portfolio. Domestic brokerage firm Nuvama maintained a positive outlook on Escorts Kubota. The company will continue to get support from global partners on the technology and export front. However, considering the impact on profits due to the sale of railway business, the brokerage firm has cut EPS by 5% and 8% for the financial year 2026-27. Nuvama has reduced the target price on this stock from ₹ 5,000 to ₹ 4,650 per share along with a Buy rating. Nuvama estimates that Escorts Kubtoa's EBITDA margin can increase from 13.3% to 14.9% by the financial year 2027. Out of the 21 analysts who have Escorts Kubota in their coverage, only 4 have a Buy opinion. Apart from this, 6 have a Hold and 11 analysts have a Sell opinion.