Escorts Ltd., incorporated in the year 1944, is a Mid Cap company (having a market cap of Rs 18458.85 Crore) operating in Auto sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2090.93 Crore, up 23.48 % from last quarter Total Income of Rs 1693.37 Crore and up 24.60 % from last year same quarter Total Income of Rs 1678.15 Crore. Company reported net profit after tax of Rs 279.46 Crore in latest quarter.
Investment Rationale
Escorts is a prominent tractor player domestically with market share in excess of 11%. With rural India relatively less impacted due to Covid-19, record food-grain procurement by government agencies as well as better than expected Kharif crop in 2020, the brokerage expects the tractor industry will continue to outperform the larger automobile space in FY21. The company has also reported a strong growth of 25.7% YoY in Q3FY21 which is expected to continue into the fourth quarter driven by strong demand.
Promoter/FII Holdings
Promoters held 40.25 per cent stake in the company as of March 31, 2020, while FIIs held 19.28 per cent, DIIs 9.94 per cent and public and others 30.5 per cent.
