Shares of Escorts plummet 10.66%

New Delhi: Early Monday, Sensex hit lower circuit limit of 10 per cent as coronavirus scare continued to weigh on sentiment. The 30-share Sensex plummeted 10 per cent or 2,991.85 points to 26,924. Market capitalisation of BSE-listed firms retreated to Rs 105.91 lakh crore from Rs 116.09 lakh crore.

Shares of Escorts traded 10.66 per cent down in Monday's trade. Around 7,12,140 shares changed hands on the counter. The stock opened at Rs 607.65 and touched an intraday high and low of Rs 646.7 and Rs 590.55, respectively, in the session so far.

Domestic tractor-maker Escorts and Kubota Corporation have decided to strengthen their partnership under which the Japanese tractors and machinery leader will pick a 10 per cent stake in the Delhi-based company for Rs 1,042 crore.


The stock quoted a 52-week high of Rs 913.5 and a 52-week low of Rs 423.55.

Financials
Escorts, incorporated in the year 1944, is a Mid Cap company (having a market cap of Rs 8276.39 crore) operating in the Auto sector.

The company reported net profit after tax of Rs 153.70 crore for the quarter ended 31 December, 2019. For the same quarter, the company reported Consolidated sales of Rs 1650.22 crore, up 23.73 per cent from last quarter Sales of Rs 1333.77 crore and down 1.27 per cent from last year same quarter Sales of Rs 1671.42 crore.

Escorts key products/revenue segments include tractors agricultural which contributed Rs 6116.76 crore to sales value (98.71 per cent of total sales), scrap which contributed Rs 30.28 crore to sales value (0.48 per cent of total sales), other operating revenue which contributed Rs 24.73 crore to sales value (0.39 per cent of total sales), sale of services which contributed Rs 14.01 crore to sales value (0.22 per cent of total sales) and export incentives which contributed Rs 10.58 crore to sales value (0.17 per cent of total sales)for the year ending 31-mar-2019.

Promoters holding
Promoters held 40.247135 per cent stake in the company as of Dec 2019.

Valuation ratio
It quoted a price-to-earnings ratio of 17.95 and price to book value of 3.09.