{"id":1813,"date":"2021-04-06T11:32:55","date_gmt":"2021-04-06T11:32:55","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=1813"},"modified":"2021-04-07T12:38:26","modified_gmt":"2021-04-07T12:38:26","slug":"tractor-volumes-show-record-growth-momentum-expected-to-continue-escorts","status":"publish","type":"post","link":"http:\/\/www.assetmultiplier.co.in\/blog\/2021\/04\/06\/tractor-volumes-show-record-growth-momentum-expected-to-continue-escorts\/","title":{"rendered":"Tractor volumes show record growth, Momentum expected to continue: Escorts"},"content":{"rendered":"<p><b>Update on Indian Equity Market:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">After yesterday\u2019s rout markets traded flat to end the day as Nifty closed the day 45 points lower at 14,683.\u00a0 Within the index, ADANIPORTS (+12.6%), TATACONSUM (+4.6%), and ASIANPAINT (+4.0%) were few of the gainers while POWERGRID (-2.3%), GRASIM (-1.3%), and EICHERMOT (-1%) led the losers. Among the sectoral indices, PHARMA (+1.8%), METAL (+1.4%), and REALTY (+1.2%)\u00a0 led the winners while BANK (-0.5%), PRIVATE BANK (-0.4%), and MEDIA (-0.3%)\u00a0 led the losers.\u00a0<\/span><\/p>\n<p><span style=\"text-decoration: underline;\"><span style=\"font-weight: 400;\">Excerpts of Interview with Bharat Madan, Group CFO of Escorts Ltd. with CNBC-TV18 dated 5<\/span><span style=\"font-weight: 400;\">th <\/span><span style=\"font-weight: 400;\">April 2021:<\/span><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Escorts posted very strong 10 percent tractor sales growth in March compared to the previous month.<\/span><span style=\"font-weight: 400;\"> FY21 ended on a strong note with total tractor sales rising 24 percent vs FY20.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Escorts achieved an annual production level of 100,000 units for the first time in its history on the back of robust growth in sales despite the Covid-19 pandemic.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The rural sentiment is expected to be strong after a good Rabi season and a favorable monsoon outlook.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Demand is expected to grow for the next 6 months on account of expansion in South India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rising Covid-19 cases has not yet impacted demand but remain a concern. However, it is not expected to hamper any supply-side considerations.<\/span><\/li>\n<\/ul>\n<p><b>Asset Multiplier Comments:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Company is witnessing a strong demand on account of economic recovery and the company is poised to continue this upward trajectory for the upcoming 2 quarters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overall, the outlook for the auto industry is favorable and the effect of supply chain issues seems to be muted so there\u2019s scope for sustained growth.<\/span><\/li>\n<\/ul>\n<p><b>Consensus Estimates (Source: market screener website):<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The closing price of ESCORTS was \u20b9 1,223\/- as of 06-April-2021.\u00a0 It traded at 15x\/ 13x the consensus EPS estimate of \u20b9 84\/ 94 for FY21E\/22E\/23E respectively.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The consensus price target is \u20b9 1470\/- which trades at 16x the EPS estimate for FY23E of \u20b9 94\/-<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Disclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update on Indian Equity Market: After yesterday\u2019s rout markets traded flat to end the day as Nifty closed the day 45 points lower at 14,683.\u00a0 Within the index, ADANIPORTS (+12.6%), TATACONSUM (+4.6%), and ASIANPAINT (+4.0%) were few of the gainers while POWERGRID (-2.3%), GRASIM (-1.3%), and EICHERMOT (-1%) led the losers. Among the sectoral indices, [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[634],"tags":[126,65],"_links":{"self":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1813"}],"collection":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1813"}],"version-history":[{"count":3,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1813\/revisions"}],"predecessor-version":[{"id":1819,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1813\/revisions\/1819"}],"wp:attachment":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1813"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}