Why this agri equipment company should find a place in your portfolio
May 15, 2020 / 10:07 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Escorts Ltd (CMP: Rs 795, Mcap: Rs 9,493 crore) posted a decent set of numbers in the last quarter of FY20 amid general macroeconomic weakness. Although net revenues declined, operating profitability improved thanks to soft raw material prices and operational efficiencies.
Though the company continues to face challenges due to the nationwide lockdown, it continues to be in a sweet spot as it caters to rural areas which are least affected by COVID-19. Its strong position in the domestic market,...