Buy Escorts, target price Rs 1480: Yes Securities

Yes Securities has buy call on Escorts with a target price of Rs 1480. The current market price of Escorts is Rs 1396.9. Time period given by analyst is Intra Day when Escorts Ltd. price can reach defined target.

Escorts Ltd., incorporated in the year 1944, is a Mid Cap company (having a market cap of Rs 18841.78 Crore) operating in Auto sector.

Escorts Ltd. key Products/Revenue Segments include Tractors Agricultural, Other Operating Revenue, Scrap, Sale of services and Export Incentives for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1750.61 Crore, down -22.90 % from last quarter Total Income of Rs 2270.65 Crore and up 56.33 % from last year same quarter Total Income of Rs 1119.85 Crore. Company reported net profit after tax of Rs 188.84 Crore in latest quarter.

Investment Rationale
The stock has resumed uptrend after breaking out the neckline of a bullish Head & Shoulder pattern on good volumes. Technical indicator RSI has turned upwards after taking support at the 60-level, suggesting strength in the stock.

Promoter/FII Holdings
Promoters held 36.6 per cent stake in the company as of June 30, 2021, while FIIs held 21.3 per cent, DIIs 5.6 per cent and public and others 36.5 per cent.