Hello and welcome back to one more interesting article wherein we’ll discuss the escorts share price which was analyzed earlier and has achieved the target predicted by us in a span of 131 days.
Let’s check the parameters which helped the Escorts share price to achieve the desired target of approximately 50%.
BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT
The management of Escorts Ltd made a statement that they would meet on 18th November 2021 to consider and evaluate the proposals for raising funds through bonds/debentures/ or any other securities.
The company received interest from Japan based Kubota Corporation which acquired a stake in Escorts.
Through this open offer the company has raised ₹ 1872.74 Cr by way of preferential issue of 96.64 lakh equity shares to Kubota at ₹ 2,000 per share.
In October 2021, the sales of Domestic tractors were 12,749 as against 13,180 tractors in October 2020.
In October 2021, the sales of Export tractors were 764 against 484 tractors sold in October 2020. This led to a growth of around 58.1%.
In October 2021, the sales of Escorts Construction Equipment Segment (ECE) were 462 machines which was 399 in October 2020. This led to a growth of 15.8 percent year on year.
FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT
Figures in Rs. Crores
|Profit and Loss||Sep 2010||Sep 2011||Sep 2012||Mar 2014||Mar 2015||Mar 2016||Mar 2017||Mar 2018||Mar 2019||Mar 2020||Mar 2021|
|Profit before tax||181||110||92||275||70||82||208||509||715||625||1155|
|EPS in Rs||12.5||11.97||6.99||20.13||6.23||5.76||10.71||28.31||39.07||38.53||64.63|
|Dividend Payout %||0.12||0.13||0.19||0.09||0.19||0.21||0.14||0.07||0.06||0.06||0.12|
The main reason for the increase in Escorts share price was the 18% sales growth in March 2021 which ultimately helped in achieving an operating profit of ₹ 1,126 Cr.
All the parameters such as Other income, Net profit, EPS, etc. are superb which is a great sign for future growth of the company.
Reserves have increased steadily, and investors are very much interested in this company seeing its great prospect.
Figures in Rs. Crores
|Balance Sheet||Sep 2010||Sep 2011||Sep 2012||Mar 2014||Mar 2015||Mar 2016||Mar 2017||Mar 2018||Mar 2019||Mar 2020||Mar 2021||Sep 2021|
SHARE HOLDING SYNOPSIS
|Share holding pattern||Dec 2018||Mar 2019||Jun 2019||Sep 2019||Dec 2019||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
Promoters have maintained their position in this stock.
But there is a great interest shown by FIIs which is showcased by their action of increasing the stake in this stock by around 0.25%.
Now, let’s deep dive into the technicalities of the share price of Voltas.
CHART PATTERN ANALYSIS
During the prior analysis we had highlighted the formation of a rounding bottom pattern.
Click here for previous analysis on Escorts share price.
The stock did give a breakout and achieved its target of ₹ 1,740.
The stock rallied till ₹ 1,802 and showed an upside of approximately 50%.
Rounding bottom pattern is a tested and verified pattern which never fails to achieve its target.
For Escorts share price analysis, we had taken 9 days and 21 days moving averages.
As per the historical crossovers we had predicted that there would be a rally in the stock once the two moving averages again cross each other.
The same happened and the stock achieved its desired target.
The 9 days moving average is indicated in red while the 21 days moving average is blue.
Super trend indicator showed a buying signal which made the conviction stronger on this stock.