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Reliance Securities has a buy on Escorts, target price Rs 925

Favourable monsoons in Escorts’ key markets of North and Central zone would support its strong outperformance in tractor industry in second half of FY20.

ETMarkets.com|
Updated: Dec 16, 2019, 08.56 AM IST
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Reliance Securities has a buy rating on Escorts in the long term with a target price of Rs 925. The stock ended up 3.3% at Rs 617.50 on Friday while BSE Sensex closed 428.00 points up at 41,009.71.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1333.77 crore, down -7.41 % from last quarter sales of Rs 1440.45 crore and down -5.57 % from last year same quarter sales of Rs 1412.51 crore. The company has reported net profit after tax of Rs 102.24 crore in latest quarter.

The company’s top management includes Dr.Sutanu Behuria, Mr.G B Mathur, Mr.Hardeep Singh, Mr.Nikhil Nanda, Mr.P H Ravikumar, Mr.Shailendra Agrawal, Mr.Sunil Kant Munjal, Mrs.Vibha Paul Rishi, Ms.Nitasha Nanda. Company has Walker, Chandiok & Co.LLP as its auditors. As on 30-09-2019, the company has a total of 122,576,878 shares outstanding.

Investment Rationale

Favourable monsoons in Escorts’ key markets of North and Central zone would support its strong outperformance in tractor industry in second half of FY20, said Reliance Securities. Further, favourable geographical mix, strong marketing and distribution strategy would aid Escorts to improve tractor volumes going forward, said Reliance Securities.

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