Escorts down 1%, PhillipCap downgrades to neutral
The stocks would languish in near-term as it enter in a phase of slower tractor growth, says PhillipCap.
PhillipCap has downgraded Escorts to neutral with target remain unchanged at Rs 800 per share.
According to firm, the stocks would languish in near-term as it enter in a phase of slower tractor growth.
The September quarter was strong one with margin has adjusted for GST compensation at 13.5 percent against estimated 9.7 percent, it added.
The company's September quarter standalone net profits increased by nearly two-and-half fold to Rs 77.56 crore against net profit of Rs 31.29 crore reported in same quarter last fiscal.
Rajan Nanda, Chairman and Managing Director of Escorts said, "Sustained economic focus and support to farm mechanisation, agro innovation and smart city infrastructure is a strong push to the industry and market demand. Our continued investments in technology, channel and product mix will continue to bring enhanced process efficiencies and business productivity."
At 10:36 hrs Escorts was quoting at Rs 751.60, down Rs 8.65, or 1.14 percent on the BSE.
Posted by Rakesh Patil
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