Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Gladiator Stocks - Escorts - ICICI Direct

Posted On: 2021-04-19 03:09:35 (Time Zone: UTC)


Strategy

Buy Escorts in the range of Rs. 1220.00-1245.00 for target price of Rs. 1420.00 with stop loss of Rs. 1140.00. Time Frame: Six months

Technical View

- The stock has undergone a healthy higher base formation in the last four months in a rectangular consolidation pattern after a stupendous rally in CY20. It is currently seen forming a potential triple bottom at the rising 52 weeks EMA (currently at 1177) being the previous almost identical lows of December 2020 and February 2021 placed around Rs. 1180 levels. Hence, it offers a fresh entry opportunity with a favourable risk reward set up

- We expect the stock to resume its primary up trend and gradually head towards Rs. 1420 levels in coming months as it is the 80% retracement of the last four months breather (Rs. 1452-1177)

- Key point to highlight is that, over past 19 weeks, the stock has retraced less than 80% of preceding 14 week's up move (1078-1452). Shallow price retracement signifies robust price structure

Fundamental View

- Escorts Ltd (Escorts) has significant exposure to the rural economy through its tractor division where it is one of the prominent players thereby commanding domestic market share at 11.4% as of 11MFY21. As of 9MFY21, Escorts derived ~83% of its sales from the tractor segment with rest being constituted by construction equipment (~10% of sales) and railways (~7% of sales). The domestic tractor space has bucked the downward trend of the overall automotive industry in FY21 by registering double digit YoY growth. The tractor space is currently enjoying supportive medium-term and longer-term tailwinds. Rural cash flows remain relatively strong due to high crop production and remunerative procurement, while government continues to focus on doubling farm incomes and improving rural infrastructure. The company is undertaking tractor capacity expansion to 1.5 lakh units p.a. (from present 1.15 lakh units p.a.), and hopes to reach production volumes of ~12-13,000 units p.m. by mid FY22E

- Sales, PAT at Escorts are expected to grow at ~15%, ~11% CAGR, respectively in FY21E-23E. The company is net cash positive with surplus cash on books to the tune of ~ ₹ 950 crore presently. It also realises healthy cash flow from operations and possesses an capital efficient business model with RoCE > 15%. Sustained strength in tractors, uptick in construction equipment prospects, healthy B/S and strategic investment of Kubota Corporation are positive factors for Escorts

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GladiatorStocks_Escorts_Apr21.pdf

Shares of ESCORTS LTD. was last trading in BSE at Rs.1246.85 as compared to the previous close of Rs. 1217.65. The total number of shares traded during the day was 53473 in over 2652 trades.

The stock hit an intraday high of Rs. 1256.45 and intraday low of 1203.15. The net turnover during the day was Rs. 66249492.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.


Other Headlines:

Q4FY21 Result Update - Pidilite Industries - ICICI Direct

Escorts Ltd - Q4FY21 First Cut - ICICI Direct

Jindal Stainless - Q4FY21 First Cut - ICICI Direct

Maintain BUY on Sonata Software - Growth visibility improves - HDFC Securities

Maintain BUY on KEC International - Near term challenges persist - HDFC Securities

Maintain BUY on Kalpataru Power Transmission - In-line performance - HDFC Securities

Tata power Q4FY21 Results Review - Inline result; alternative to InvIT on cards - HDFC Securities

Mahindra Lifespaces Q4FY21 Results Review - On track - HDFC Securities

Mphasis - Q4FY21 first cut: Muted performance - YES Securities

Voltas - Q4FY21 first cut: All round beat with strong operating performance led by EMPS segment - YES Securities

HG Infra Engineering - Q4FY21 first cut: Stellar performance - YES Securities

Polycab India - Q4 FY21 First cut - YES Securities

JMC Projects (India) Ltd - Q4FY21 Result Update - YES Securities

Asian Paints Ltd - Q4FY21 Result Update - YES Securities

Lupin - Q4FY21 Result Update - YES Securities

Godrej Consumer Products Ltd - Q4FY21 Result Update - YES Securities

Orient Electric Ltd - Q4FY21 Result Update - YES Securities

Matrimony.com - Q4FY21 Result Update - YES Securities

Birla Corporation Ltd - Q4FY21 Result Update - YES Securities

Lupin Q4FY21 Results Review - Positives in the price - HDFC Securities

Jindal Steel & Power - Net debt to remain comfortable as 6mtpa Angul expansion commences - ICICI Securities

Hindalco Industries - Saturation of an earnings trigger - ICICI Securities

Indigo Paints - Differentiation is the key; initiate at ADD - ICICI Securities

Lupin - Margin improvement factored in valuations - ICICI Securities

Blue Star - Focusing on core competencies - ICICI Securities

KEC International - Strong growth, healthy cashflow - ICICI Securities

Kalpataru Power & Transmission - Healthy growth, asset sales to aid cashflow - ICICI Securities

Asian Paints - Leader demonstrating leadership - ICICI Securities

Prince Pipes and Fittings - Beat on all counts - Q4FY21 Result - ICICI Securities

Polymer price tracker - PVC prices fall after a year; volatile journey ahead - ICICI Securities

Westlife Development - Good 4Q; retains store expansion target - ICICI Securities

Pidilite Industries - Input cost inflation impacts performance - ICICI Securities

UPL - Strong volume growth maintained - ICICI Securities

Piramal Enterprises - DTA derecognition and interest reversals weigh on earnings; strategic priorities remain in place - ICICI Securities

Q4FY21 Company Update - Saregama India - ICICI Direct

Q4FY21 Result Update - Asian Paints - ICICI Direct

Cadila Healthcare - Divests animal health business - ICICI Securities

Q4FY21 Result Update - Granules India - ICICI Direct

Q4FY21 Company Update - Firstsource Solutions - ICICI Direct

Q4FY21 Company Update - Sonata Software - ICICI Direct

Company Update - Cadila Healthcare - ICICI Direct

Q4FY21 Result Update - Kalpataru Power - ICICI Direct

Q4FY21 Result Update - KEC International - ICICI Direct

Q4FY21 Company Update - Matrimony.com Ltd - ICICI Direct

Maintain REDUCE on Asian Paints - Exceeds expectations - HDFC Securities

JMC Projects Results Report - Poised for growth - HDFC Securities

Maintain ADD on Godrej Consumers - Miss in 4Q margin; inspiring addition to team - HDFC Securities

Maintain BUY on Birla Corporation - Healthy performance - HDFC Securities

Subscriber watch - Bharti wins more market share across categories - ICICI Securities

Siemens Ltd - Healthy margins with growth recovery - ICICI Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020