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Buy Escorts; target of Rs 950: HDFC Securities

HDFC Securities is bullish on Escorts has recommended buy rating on the stock with a target price of Rs 950 in its research report dated May 19, 2020.

May 21, 2020 / 08:28 PM IST
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HDFC Securities' research report on Escorts

We initiate on Escorts with a BUY as the domestic tractor OEM will benefit from the equity investment by Japan’s leading tractor major Kubota. The partnership will provide new growth avenues for Escorts across product segments (including mechanised equipment) as well as geographies (new export markets as well as manufacturing base for Kubota’s international operations). Further, the government is rolling out structural reforms in the agricultural segment, which will enhance farm incomes. These initiatives will promote mechanisation of agriculture.


We set a target price of Rs 950 at 15x FY22E EPS. We value the stock at a 15% premium to the last five year average trading multiple.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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first published: May 21, 2020 08:28 pm

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