InvestorQ : What explains Escorts stock price touching a new high in these kinds of tough markets?
manisha Kolvenkar made post

What explains Escorts stock price touching a new high in these kinds of tough markets?

Answer
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Mahima Roy answered.
4 months ago


During the week just gone by, Escorts hit a 52-week high of Rs.919, on the back of expectations that tractors sales could recover faster than other segments. Escorts has already rallied 16% in the last 6 trading sessions. The trigger was the strong quarterly numbers reported for the Mar-20 quarter. Escorts reported 2.5% higher EBITDA at Rs.194 crore, while EBITDA margins expanded marginally to 12.1%. This was despite 15% lower revenues at Rs.1380 crore in the Mar-20 quarter. Escorts benefited in the March quarter due to a good harvest, increased procurement by respective governments and their focussed support to farming. Escorts also benefited from a robust Rabi crop as the late monsoons helped the reservoirs to fill up. Most analysts are betting on tractor industry recovering led by pent-up demand and positive rural sentiments after strong Rabi output. Monsoons are also expected to be normal in 2020.