Escorts jumped 1.12% to Rs 1,902.15, extending its winning run to seventh consecutive trading session.
Shares of Escorts have surged nearly 5% in seven trading sessions from its previous closing low of Rs 1,813.95 posted on 20 December 2021. The counter hit a record high of Rs 1,903.85 intraday today. The stock has zoomed nearly 73% from its 52-week low of Rs 1,100.10 recorded on 3 May 2021.Since the start of 2021, Escorts has given stellar returns to investors, rising 51%, while the Nifty 50 index has gained 23.3% in the same period.
The counter witnessed buying demand after the tractor maker on 18 November announced that Kubota Corporation will increase its stake in the company. "As part of this Kubota Corporation shall increase its equity stake in Escorts by subscribing to new equity shares proposed to be issued by Escorts and shall become a joint promoter along with existing promoter of Escorts," the company said in a statement.
Escorts will issue 9,363,726 equity shares through a preferential issue to Kubota at an issue price of Rs 2,000 per equity share aggregating Rs 1,872.74 crore, subject to shareholders' and necessary regulatory approvals. Post Preferential allotment, Kubota's investment in Escorts will be 14.99%. Kubota Corporation held 1.22,57,688 shares (representing 9.09% stake) in Escorts as on 30 September 2021.
On the technical front, the stock's RSI (relative strength index) stood at 71.685. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock is trading above its 50 and 100 days simple moving average placed at 1716.67 and 1553.36 respectively. These levels will act as crucial support zones in near term.
The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.
Escorts reported 23.7% fall in standalone net profit to Rs 173.47 crore on a 1.2% rise in net sales to Rs 1,673.85 crore in Q2 FY22 over Q2 FY21.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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