Escorts in the green

Escorts reported a lower-than-estimated performance for Q3FY22 yet prudence prevailed the stock remains in the green.

The company posted a 32% (YoY) decline in consolidated net profit at rs.194 crore while sequentially, it was up 12%.

This was on a revenue from operations of Rs.1984 crore, down 3% (YoY).

Last week, CCI gave its approval for the acquisition of certain additional equity I Escorts by Kubota Corporation.

The Japanese company is acquiring an additional 5.9% (over and above the 9.09% held) in it for Rs 1,872.74 crore, taking the total holding to 14.99% cent and becoming a joint promoter in the Indian firm.

The company will issue 93.64 lakh equity shares through a preferential issue to Kubota at an issue price of Rs 2,000 per equity share, aggregating Rs 1,872.74 crore.

The stock price has reacted positively. Though it opened slightly lower at Rs.1816, it soon rose to an intraday high at Rs.1849.55 and is currently trading at Rs.1841 levels.