HNIs betting big on Escorts; see no change in fundamentals: Deven Choksey, MD, KR Choksey Securities

In an interview with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on growth and GDP data:

ET Now: I fail to understand what is the linkage here: the industry is not doing well, tractor sales are under pressure, monsoons have been subpar but yet a pure agrarian company has appreciated by 22% in a month when midcap stocks lost anywhere between 5% to 10% on an average?

Deven Choksey: Well, certainly the fundamental factors, as you rightly said, they are not changing for the business and it is remaining as they are, however, only one factor that one could attribute at this point of time to these stocks could be the larger amount of allocation of fund by the large investors and as a result of which probably the market has caught the fancy of it and that is where you are seeing the price sustaining or appreciating. I do not see any fundamental changes happening again in the business which warrants this particular kind of a price behaviour of the stock.