Angel Broking has a call to buy with a target price of Rs 1537. The current market price for escorts is Rs 1366.25.
Escorts Ltd., founded in 1944, is a mid-cap company (with a market capitalization of Rs.18,458.85) operating in the automotive sector.
For the quarter ended 12/31/2020, the company reported total consolidated income of Rs 2090.93 crore, up 23.48% over the previous quarter to total income of Rs 1693.37 crore and up 24.60% over the year-ago quarter of total income of Rs 1678.15 crore. The company reported net income after tax of Rs 279.46 for the most recent quarter.
Escorts is a leading domestic tractor manufacturer with a market share of more than 11%. With rural India being relatively less affected due to Covid-19, food grain sourcing by government agencies at record levels, and Kharif’s 2020 harvest turning out better than expected, the broker expects the tractor industry to get the bigger auto space in the fiscal year 21 will continue to surpass. The company posted strong year-over-year growth of 25.7% in the third quarter of fiscal year 21, which is expected to continue into the fourth quarter due to strong demand.
Promoter / FII Holdings
As of March 31, 2020, the promoters held 40.25 percent of the shares in the company, while the FIIs held 19.28 percent, the DIIs 9.94 percent, and the public and others held 30.5 percent of the shares.