4MFY21 data on Tractor industry - Amarjeet Maurya, AVP - Mid Caps, Angel Broking Ltd

"During 4MFY21, Tractor Companies have reported a strong recovery in tractor sales number. In the same period, M&M and Escorts's tractor sales number combined (combined market share is more than 50% in domestic tractor) de-grew by ~12% to 1,11,683 units. However, In July 2020, both companies' combined sales number grew by ~24% to 29,416 units. Going forward we expect strong sales for tractor on back of positive sentiments due to good cash flows to farmers, higher Kharif sowing, a timely and normal monsoon cumulatively across June & July and continued higher rural spending by the Government. Hence, we are positive on stock like M&M, Escorts and Swaraj Engines."

Source : Equity Bulls

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