Mixed results by Escorts, outlook depends on monsoon

Weak tractor demand is a drag on revenues but construction equipment & railway segments recover sharply

Nitin Agrawal
May 11, 2023 / 09:49 AM IST
Mixed results by Escorts, outlook depends on monsoon

Escorts has reported a mixed set of numbers for Q4FY23 due to weak demand in the tractor segment.

PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

Highlights Escorts posts a mixed set of numbers Raw material price correction helped in arresting the impact of low volumes Construction equipment, railway segments pick up pace With normal monsoon expected, tractor demand likely to be strong Valuations at fair level, accumulate stock on dips for the long term   Escorts Ltd (CMP: Rs 2,038; M Cap: Rs 26,600 crore) has reported a mixed set of  numbers for Q4FY23 due to weak demand in the tractor segment. The company continues to be in a sweet spot as...