Escorts share price spikes 9%, hits 52-week high on hopes of better tractor sales
The stock was the top gainer from the BSE midcap space. It has touched a 52-week high of Rs 851.05 per share.
February 03, 2020 / 03:27 PM IST
The share price of Escorts spiked over 9 percent intraday on February 3 on expectation of an improvement in tractor sales.
Finance Minister Nirmala Sitharaman in the Budget presented on February 1 increased agriculture credit target to Rs 15 lakh crore for FY21. The fund allocation for agriculture and rural development ministries was increased to Rs 2.25 lakh.
The tractor-maker on January 29 reported an 11.05 percent year-on-year growth in third quarter consolidated profit at Rs 154.87 crore.
The domestic tractor industry declined by 6 percent YoY in Q3FY20. The north and central regions degrew by 4.2 percent, whereas industry degrew by 8.1 percent in the south and the west.
The stock was the top gainer in the BSE midcap space and was quoting at Rs 843.45, up Rs 69.50, or 8.98 percent. It has touched a 52-week high of Rs 851.05.
The stock hit new 52-week high and surged over 83 percent in the last six months.
Research firm Reliance Securities has maintained a buy on the stock, with target at Rs 1,075 and expects earnings upgrade and re-rating to continue in FY21.
"We are continuing our journey of providing unique and innovative technology solutions for maximising agriculture yield, bring in efficiency in the construction equipment space and make rail transport safer," Escorts Chairman and Managing Director Nikhil Nanda said.