Escort share price

POSITIONAL TRADING: Escort share price on 10 July 2021

The stock for today is Escorts Limited.

BUSINESS ANALYSIS

Escorts limited is engaged in the business of manufacturing of agricultural tractors, engines for agricultural tractors, earth moving, construction and material handling equipment, heating elements, round and flat tubes.

It also manufactures double acting shock absorbers for railway coaches, centre buffer couplers, automobile shock absorbers, telescopic front fork & Macpherson struts.

Escorts also deals in the braking system of railways.

Now coming to the Financials of the company.

FINANCIAL ANALYSIS

The market capitalization of Escorts limited is Rs. 16,183 Cr.

The price to earnings ratio of the Escorts share is 18.6 which is closer to the industry price to earnings ratio of 18.7.

The return on capital employed is 26.1% which fascinates us and suggests the bright future of the Escorts share price.

The return on equity is 19.7% which states the returns an investor will get when certain amount will be invested in the Escort share price.

The company has a debt to equity ratio of 0.01 which indicates that the company is debt free and can utilize its cash flow for the expansion.

Based on the market capitalization, Escorts limited stands tall at the 1st position.

There is a drastic reduction in the debt of the Escorts limited.

An excellent profit growth of 65.19% CAGR has been seen by this company in the last 5 years.

Debtor days have improved from 44.82 to 34.22 days in the year March 2021.

From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) the sales are increasing constantly from Rs 1,089 Cr to Rs 2,229 Cr.

The operating profit from the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) has increased from Rs 121 Cr to Rs 363 Cr.

The expenses are also increasing but not at drastic level so this parameter should not affect our interest in the Escort share price.

The net profit was Rs 92 Cr in the June 2020 quarter due to Covid pandemic, but it has drastically increased to Rs 265 Cr in the March 2021 quarter.

The earnings per share value is Rs 19.68.

There is an extra ordinary profit growth year on year which predicts the bright future of the company as the operating profit rose from Rs 5,810 Cr in March 2020 to Rs 7,014 Cr in March 2021.

In the year 2021, the reserves have increased to Rs 5,888 Cr from Rs 5,150 Cr in the year 2020 which shows the massive interest of investors into Escort share price.

The share capital of the Escorts limited has also increased to Rs 135 Cr in the year 2021.

Promoters have a holding of 36.59% till March 2021 quarter.

The FII’s have a 25.95% holding.

The DII’s have a 5.60% holding while only 29.71% is with the public.

The company is in safe hands and their growth is pretty much awesome.

This is a brief overview of the Financials of the company which showcases the dominance in their respective market.

Now let’s deep dive in technical aspect of the stock.

TECHNICAL ANALYSIS

If we give a closer look on the chart in a daily timeframe, we can see that there is a breakout from the trendline and a rounding pattern formation.

This pattern has a unique structure and a breakout will be achieved in a very short span of time.

The pattern is under formation and is ready to achieve its target.

Escort share price on 10th July 2021 is Rs. 1200 which would definitely vary in the upcoming future.

The high price of the stock in the last 1 year was Rs 1,468.

DISCLAIMER

1 thought on “POSITIONAL TRADING: Escort share price on 10 July 2021”

  1. Pingback: ESCORTS SHARE PRICE: TARGET ACHIEVED!!! - LearnTwoTrade

Leave a Comment

Your email address will not be published.