Confirmation to Buy Escort @ 1238 to 1254 odd levels
Invalidation level @ 1181.40
Positional Target: 1580, 1620, 1692
Expected return 30.21% in next 1 to 12 weeks
Escorts in involved in production of agri-machinery, construction and material handling equipment and railway equipment from its plants at various locations. With a domestic market share of 11.6% at the end of last fiscal the company sells a wide range of tractors under the Farmtrac, Powertrac and Steeltrac brands. Its domestic tractor and components annual capacity is 1.2 lakh units.
Company Overview Headquartered in Faridabad and having presence in high growth business segments of agri-machinery, construction and material handling equipment and railway equipment, Escorts has helped power India's socio-economic development for decades. Specifically, the company is engaged in manufacturing of agricultural tractors, engines for agricultural tractors, earth moving and material handling equipment, round and flat tubes, heating elements, double acting hydraulic shock absorbers for railways coaches, center buffer couplers, automobile shock absorbers, telescopic front fork & McPherson struts, brake block, internal combustion engines and all types of brake used by railways. It also trades in oils & lubricants, implements, trailers, tractors, compressor accessories and spares, earth moving and material handling equipment and aero parts. Escorts covets fourth largest position in Indian tractor industry - after M&M, Tractors and Farm Equipment Ltd and International Tractors Ltd - with domestic market share of 11.6% at the end of last fiscal, vending a wide range of tractors under the Farmtrac and Powertrac brands. It also sells 10-15 hp tractors under the Steeltrac brand through a JV. It has seen various restructurings in the past with sale of healthcare, software, telecommunication and auto component businesses and merger of Escorts Construction Equipment, Escotrac Finance & Investments and Escorts Finance & Leasing with itself.
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