Moneycontrol
Get App
Last Updated : Sep 11, 2019 10:47 AM IST | Source: Moneycontrol.com

Escorts gains 3% as HSBC remains bullish; cuts price amid declining tractor sales

HSBC has maintained buy rating on the stock, though it slashed price target to Rs 770 from Rs 980 per share amid lower sales growth

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Escorts shares gained 2.7 percent intraday on September 11 after global brokerage house HSBC retained its bullish stance on the stock.

According to the firm, the stock is cheap at 9x FY21 EPS estimates.

The stock gained nearly 8 percent in last 15 days. It was quoting at Rs 510.80, up Rs 6.70, or 1.33 percent on the BSE at 1018 hours IST.

Close

HSBC has maintained buy rating on the stock, though it slashed price target to Rs 770 from Rs 980 per share amid lower sales growth.

Escorts' agri machinery segment sold 4,035 tractors in August 2019, lower by 16.1 percent compared to same month last year as domestic tractor sales fell 19.5 percent YoY, but exports increased 97.1 percent.

In first five months of financial year 2019-20, tractor sales declined 14.2 percent to 29,946 units YoY as domestic sales volume slipped 16.7 percent.

"Tractor demand may bottom out in second half of FY20. UP/Maharashtra/Gujarat states are likely to see pick-up in growth post monsoons while MP/Rajasthan should continue to do well," HSBC said, adding Escorts has reduced inventory in recent months.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Sep 11, 2019 10:47 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant