The company’s stock on BSE was at Rs 527.10 in March last year, but now it has gone up by 152 percent.
Veteran investor Rakesh Jhunjhunwala has invested in escorts, due to good demand from tractors, the stock may continue to rise further
- Last Updated : February 3, 2021, 8:16 pm IS
new Delhi. It is said that the stock Rakesh Jhunjhunwala touches starts spewing gold for investors. Therefore, he is also called Warren Buffet of India. Among the companies with which he holds shares, Escorts are also included.
The company’s stock on BSE was at Rs 527.10 in March last year, but now it has gone up by 152 percent. In the September quarter, the company’s profit rose 83.4 percent to Rs 280.7 crore. Market experts believe that as the economy improves, sales of tractors are likely to increase in the coming days. Due to this, shares of the company can be seen rising. The company’s stock was trading at Rs 1384 with a gain of about 4 per cent at around 3:15 pm on Wednesday afternoon.
Significantly, Jhunjhunwala has a 4.75 per cent stake in the company. Due to better crop production and prices, increasing mechanization and government’s focus on infrastructure development, the tractor industry’s position is looking strong. This will benefit tractor-making companies like Escorts and Mahindra & Mahindra. Analysts say Escorts shares are likely to rise up to 28 per cent after the December quarter results.
Know how many ratings have been given by experts
Kotak Institutional Equities has maintained a Buy rating for this stock. The price target has been increased from Rs 1680 to Rs 1700. Philips Capital and HDFC Securities have also given Buy and Add ratings to Escorts stock respectively. Philips Capital has set a target price of Rs 1615 and HDFC Securities has kept Rs 1480.