Mumbai, March 10 -- The brokerage noted that the demand for Escorts Kubota's tractor has become less dependent on monsoon variability because of structural buffers including irrigation, minimum support price (MSP) support, income diversification, non-agricultural usage and improved finances.

It added that the recent GST cut and improvement in terms of trade, are likely to limit the decline in tractor volumes.

The brokerage also highlighted that the Escorts Kubota's recent launches aim to address product gaps and should drive market share gains. With newer launches in the tractor segment, it believes the company's the market share has bottomed out and will start inching upward in the coming quarters. It said the construction equipment in...