Expert says Escorts shares have strong support at Rs 1200 – Rs 1180, breakout above Rs 1400
Farming and construction equipment-maker Escorts share price today is Rs 1281, up Rs 10 or 0.8%. IIFL Securities initiates coverage on Escorts with an ADD rating and target price of Rs 1470. The tractor industry, which clocked an exceptional volume growth of >25% in FY21, may continue growing even in FY22, albeit at a lower rate. However, industry profitability (% margin and Ebit/tractor) may come off in FY22 due to multiple factors. As a result, tractor industry earnings growth is likely to be subdued
IIFL Securities says that it expects Escorts to outperform, with market-share gain in domestic tractors and high growth in exports: Reuters