By Aditya Raghunath
Investing.com – Escorts Ltd (NS :), a conglomerate active in the fields of agricultural machinery, construction machinery and railroad equipment, announced its results for the third quarter of fiscal year 21, which ended in December 2020. Net income increased 83.4% to Rs 280.7 crores compared to Rs 153.1 crores for the corresponding quarter of the last fiscal year.
The company’s inter-company sales improved to Rs. 2,017.4 billion in December 2020 from Rs. 1,633.4 billion in December 2019: “Agricultural demand for tractors and farm mechanization continues to grow. We hope for continued momentum as we see a strengthening of the agricultural and rural economies, ”said CMD Nikhil Nanda.
Sales of tractors rose by 25.7% from 25,109 units in December 2019 to 31,562 units. Sales of construction machinery rose by 20.1% from 1,044 in December 2019 to 1,254 machines.
The stock is currently trading at Rs 1,401 and analysts are bullish on the stock. Brokerage firms have set targets that range from Rs 1,500 (ICICI Securities) to Rs 1,700 (Kotak Institutional Securities).
It also helps that Ace investor Rakesh Jhunjunwalaowns owns 4.75 Escorts (NS 🙂 as of December 31, 2020. One point, however, is that ‘The Big Bull’ has reduced its stake in Escorts, despite the stock’s return of 207% from its March 2020 lows. Jhunjhunwala owned 7.42% of the company as of March 2020. At the end of September 2020, he reduced it to 5.64%.