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Escorts hits 52-week high

Escorts AGM: Institutions dissent heavily on three resolutions Escorts has moved higher to its fresh 52-week high of Rs 202, up 11% on the BSE in early morning trade on hopes of good monsoon will aid tractor sales growth.

The counter has seen huge trading volumes with a combined 3.52 million equity shares representing 2.9% of total equity of Escorts changed hands on the BSE and NSE till 09:32 AM.

In past one-month, the stock has outperformed the market by gaining 21% as compared to 6% rise in the S&P BSE Sensex.

The company had reported ebidta (earnings before interest depreciation and tax) margin at 4.8% in March quarter, correspondingly up by 213 basis points (bps) on Y-o-Y and sequentially up by 98 bps on Q-o-Q, due to better product mix and cost reduction.

“We have improved our profitability and are confident that the company is well poised to take advantage of the inevitable improvement in both the farm and construction sector,” said Rajan Nanda, chairman and managing director, Escorts, on commenting Q4 results.

Anand Rathi Research believes with a favourable monsoon predicted, the broking firm expects the companies linked to the rural economy to report strong growth in earnings.

Escorts have diversified business in to four different segments. Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE), Railway Equipment Division (RED) & Escorts Auto Products (EAP).