Escorts on the buzz

Escorts is on a buzz once again today. After having hit new 52-week highs on 6^th, 7^th and 9^th of Dec’13, the stock price is once again in the green. It is currently up 2% at Rs.125.10, around its intar day high levels. Its 52-week high stands at Rs.133.40.

The stock is on the buzz today on news report stating that the company might soon put its auto ancillary unit on the block. While Escorts is currently driven by strong tractors business, this unit has been a drag on the profitability, with increasing competition eating away market share and margins. The company is said to have appointed an investment banking firm to find the right suitor.