The Escorts Group, is among India's leading engineering conglomerates operating in the high growth sectors of agri-machinery, construction & material handling equipment, railway equipment and auto components. Escorts is a leading manufacturer of auto suspension products including shock absorbers and telescopic front forks. Escorts has been a major player in the railway equipment business in India for nearly five decades with product offering includes brakes, couplers, shock absorbers, rail fastening systems, composite brake blocks and vulcanized rubber parts.
Businesses includes;-
Why Escorts -
- CAGR of 10.9% over the last 10 years
- Market share of 45% as at FYE15 in industrial segment
- Promoter holding - 43% as of Jun15
- Agri-machinery, which contributed to the 80% of the top-line, offers primarily tractors and tillers, harrows, ploughs, bailers, rotavators alongwith lubricants, engines, gensets.
- The company, a few years ago had designed a reinvention plan; the revival plan included management reshuffling, raw material cost control, consolidation of plants, downsizing the workforce and thereby achieving a substantial improvement in operating margins. The company has been well on track with the objectives set in 2012.
TECHNICAL REASON
- Have a immediate support at 140-150
- Strong support at 100-110
CMP - 175
INTERESTING FACTS -
- This stock is in the last 24 years its in a range and never participated in a big way in any of the past rallies. so its time is now.
- Rakesh jhunjhunwala and goldman sacs are the large share holders in this script.
- May give 3 fold return in long term.
Disclosure - I am not a research analyst and expressing opinion only as an individual investor in Indian equities. Readers should consult their financial advisers before any investment.
