Escorts share price climbs over 5% on Q4 earnings

Share price of Escorts rose over 5% today after farm equipment and engineering products maker reported a 9.71 per cent increase in Q4 net profit at Rs 127.73 crore against Rs 116.42 crore profit in January-March period of 2018-19.

Escorts share gained 5.14% intraday to Rs 835 against the last closing value of Rs 794.30. Later the stock closed 3.75% higher at Rs 824.  

The stock opened with a gain of 2.23% at Rs 812 today. Escorts share has gained 50% during last one year and 31% since the beginning of this year. Escorts stock stands higher than its 5, 20, 50, 100 and 200-day moving averages. Volume-wise, 3.06 lakh shares changed hands on BSE amounting to turnover of Rs 25.08 crore.

Total income of the company declined to Rs 1,415.95 crore during the fourth quarter as against Rs 1,668.72 crore in the corresponding period a year ago, Escorts said in a statement.

For the full 2019-20 fiscal, the company posted a consolidated net profit of Rs 471.7 crore as compared with Rs 477.9 crore in 2018-19.

Total income for 2019-20 fiscal stood at Rs 5,907.69 crore as compared with Rs 6,354.42 crore in 2018-19.

Emkay Global has given a buy rating to Escorts Ltd with a 12-month target price of Rs 898.

"Volumes are expected to turn positive by August led by low base, pent up demand and better rural sentiment. Escorts is expected to sustain market share in domestic tractors ahead, led by a continuation of aggressive marketing efforts, success of its dual-brand strategy - Farmtrac and Powertrac series - and focus on network expansion. The 8 per cent CAGR in revenues and 15 per cent CAGR in earnings over FY20-22E, was driven by volume up-cycle and margin expansion. The target price is based on 14 times FY22E core EPS," Emkay said