Escorts may correct further, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Disappointing numbers in Escorts. If you look at the farm equipment segment which is the bread and butter for the company, clear volume de-growth has been seen over the past few quarters. The way monsoons have panned out, we are not seeing any respite happening on that count. Even on the construction equipment segment, the alternate choice was that a lot of this equipment might get used for a lot of infra/construction activity. However looking at how the capex cycle is moving within the country, I think even that movement looks a little bit tepid. So, operationally the numbers are weak. You should also look out for any exceptional items that happened in the quarter in the last year.""I think there might be some exceptions out there in Escorts. I think numbers are clearly weak for Escorts. The stock might even correct further from the current level," he said.