Buy Escorts, target Rs 710: Dr CK Narayan

Dr CK Narayan of Chart Advise has a buy call on Escorts Ltd. with a target price of Rs 710. The current market price of Escorts Ltd. is Rs 688.4 Time period given by the analyst is Intra Day when Escorts Ltd. price can reach the defined target. Dr CK Narayan recommended to keep stoploss at Rs 683. Escorts Ltd., incorporated in 1944, is a midcap company with a market cap of Rs 8438.19 crore.

Escorts Ltd. key Products/Revenue Segments include Tractors Agricultural which contributed Rs 4974.15 Crore to Sales Value (99.16 % of Total Sales), Sale of services which contributed Rs 15.17 Crore to Sales Value (0.30 % of Total Sales), Scrap which contributed Rs 13.98 Crore to Sales Value (0.27 % of Total Sales), Export Incentives which contributed Rs 10.35 Crore to Sales Value (0.20 % of Total Sales) and Other Operating Revenue which contributed Rs 2.32 Crore to Sales Value (0.04 % of Total Sales)for the year ending 31-Mar-2018.

For the quarter ended 30-09-2018, the company has reported a Standalone sales of Rs 1398.36 Crore, down -7.47 % from last quarter Sales of Rs 1511.29 Crore and up 15.41 % from last year same quarter Sales of Rs 1211.68 Crore Company has reported net profit after tax of Rs 102.74 Crore in latest quarter. The company’s top management includes Dr.Sutanu Behuria, Mr.D J Kakalia, Mr.G B Mathur, Mr.Hardeep Singh, Mr.Nikhil Nanda, Mr.P H Ravikumar, Mr.Ravi Dharm Narain, Mrs.Vibha Paul Rishi, Ms.Nitasha Nanda. Company has Walker, Chandiok & Co.LLP as its auditoRs As on 30-09-2018, the company has a total of 122,576,878 shares outstanding.