Escorts reaps a bounty

Escorts, in the opening bell session rose over 6% to Rs.1153 levels but profit booking at that level pushed the stock to Rs.1102 levels currently, up 1.5%. Volumes are up almost 1.5 times.

Today morning, the company announced its sales numbers for the month of August and it was good news. It reported a very strong 80% (YoY) jump in tractor sales.

Its Agri Machinery Segment (EAM) sold 7,268 tractors v/s 4035 (YoY), which is its highest-ever August sales.

On MoM basis, the volume was up 37%.

Export tractor sales was up 90% at 518 tractors.

The company said that the market sentiment continues to be highly positive with good monsoons, better Kharif sowing, crop prices holding up well, and good supply of retail finance.

It remains optimistic for the coming festive months. The supply side  has improved significantly as compared to last month.

Escorts said that it is currently operating close to peak capacity now. In August 2020 it could build some inventory both at dealer and depots, which since last few months was at very low levels.