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  • Current price 139.95

    Sector Tractor

    No of shares 122576878

    52 week high 174.25

    52 week low 102.15

    BSE Sensex 28885.21

    Nifty 8778.30

    Average Volume 993767

    BSE Code 500495

    NSE Symbol ESCORTS

    Escorts Ltd.

    Recommendation

    BUY/HOLD

    Date 09/04/2015

  • Company Overview

    Escorts Limited manufactures and sells agri machinery, construction equipment, railway products, and auto

    products in India and internationally. It offers tractors under the Farmtrac, Powertrac, and Escort brands;

    engines for agricultural tractors; round end flat tubes; heating elements; double acting hydraulic shock

    absorbers for railways coaches; and center buffer couplers. The company also provides automobile shock

    absorbers, telescopic front forks, Mcpherson struts, break blocks, and internal combustion engines, as well as

    various breaks used in railway, construction, earth moving, and material handling equipment. In addition, it

    trades in oils and lubricants, implements, trailers, compressor accessories and spares, construction

    equipment, and earth moving and material handling equipments, a well as offers lubricants, such as engine

    and gear oils. They also offer brakes, couplers, shock absorbers, rail fastening systems, composite brake

    blocks and vulcanized rubber parts.

    The company through their subsidiaries operates in the ITES and financial services sectors. The company is

    also involved in the aero business; and financing and investment activities, as well as offers engines and

    gensets. Escorts Limited was incorporated in 1944 and is based in Faridabad, India. Escorts has had the

    privilege of being associated with some of the world leaders in the engineering manufacturing space like

    Minneapolis Moline, Massey Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J C Bamford

    Excavators, Yamaha, Claas, Carraro, Lucky Goldstar, First Pacific Company, Hughes Communications,

    Jeumont Schneider, Dynapac .

    Today, Escort Agri Machinery Group has a nationwide network with over 600 dealers, 100 parts stockiests and

    30 area offices. Their national share stands at 20%. The company has developed its own in-house state-of-

    the-art technology R&D facility. The main focus of the R&D facility is to develop new and better products -

    products that can offer improved performance with lower fuel consumption and least maintenance and parts

    requirements. The current market capitalisation stands at Rs 1,680.53 crore.

  • Category No. of Shares Percentage

    Promoters 51,433,750 41.96

    General Public 46,534,451 37.96

    Foreign

    Institutions11,416,181 9.31

    Other

    Companies8,516,909 6.95

    NBFC and

    Mutual Funds3,688,198 3.01

    Financial

    Institutions987,389 0.81

    Market Cap (Rs Cr) 1667.05

    Company P/E (x) 17.78

    Industry P/E (x) 19.82

    Book Value (Rs) 149.62

    Price / BV (x) 0.91

    Dividend (%) 18%

    EPS (TTM) 7.65

    Dividend Yield (%) 1.32 %

    Face Value (Rs) 10

    Share Holding Pattern Financial Details

  • Industry Overview

    Indian Tractor industry is the largest in world and contributes around 33% to global production. Indian Tractor

    Industry, comparatively young by world standards has expanded at a spectacular pace during the last four

    decades. Consequently it now occupies a place of pride in India's Automobile Industry also.

    India's growth is unmatched even with countries of long history of Tractor manufacturing. The Indian Tractor

    Industry's spectacular achievement reflects the maturity and dynamism of tractor manufacturers and the

    various policies adopted by the government to enable it to effectively meet the demand. It is a typical industry

    where both imported technology and indigenous developed technology have developed towards meeting the

    overall national requirements of the country

    Overall tractor sales (domestic +exports) have declined by 0.7% YoY during 5m FY15. ICRA however expects

    some pick-up in tractor sales during the latter half of the fiscal year, and our FY15 growth outlook (for domestic

    +export) stands at 4%. The outlook could however be revised downwards, if domestic demand fails to pick-up

    in the festive season. ICRA continues to maintain a volume CAGR of (8-9%) for the tractor Industry over the

    next five years as long term industry drivers remain favorable.

    Government of India (GOI) remains committed towards rural development and agri-mechanisation besides

    other factors like scarcity of farm labour, healthy credit availability, moderate penetration and shortening

    replacement cycle, continue to encourage demand for tractors. Further, there has been considerable variation

    in growth rates, across geographies. Southern (except Tamil Nadu) and Western markets continued to grow

    during the current year, supported by relatively better monsoon precipitation. Central region however,

    registered a decline of 10.8% in light of high base, and weak rainfall during the current year. Volumes in

    Northern region also contracted, as a consequence of weak sentiments in farming community. Variance in

    growth across geographies, has also impacted market share of OEMs.

  • Balance Sheet

    Mar '14 Sep '12 Sep '11 Sep '10 Sep '09

    Sources Of Funds

    Total Share Capital 119.27 119.27 102.31 102.28 90.71

    Equity Share Capital 119.27 119.27 102.31 102.28 90.71

    Reserves 1,712.11 1,494.69 1,641.56 1,571.08 1,278.48

    Networth 1,831.38 1,613.96 1,743.87 1,673.36 1,369.19

    Secured Loans 345.31 458.04 359.87 283.78 253.79

    Unsecured Loans 5.09 1.89 12.73 14.82 10.36

    Total Debt 350.40 459.93 372.60 298.60 264.15

    Total Liabilities 2,181.78 2,073.89 2,116.47 1,971.96 1,633.34

    Application Of Funds

    Gross Block 2,399.73 2,281.54 2,141.12 2,095.45 2,059.83

    Less: Revaluation Reserves 0.00 0.00 54.58 64.47 75.00

    Less: Accum. Depreciation 757.04 695.29 679.24 645.74 602.93

    Net Block 1,642.69 1,586.25 1,407.30 1,385.24 1,381.90

    Capital Work in Progress 37.36 66.49 53.52 19.43 10.71

    Investments 381.50 385.91 365.80 365.80 235.80

    Inventories 550.97 496.61 327.36 295.50 199.49

    Sundry Debtors 352.41 445.44 340.53 332.62 329.15

    Cash and Bank Balance 160.77 130.57 140.86 101.54 107.57

    Total Current Assets 1,064.15 1,072.62 808.75 729.66 636.21

    Loans and Advances 367.00 304.64 457.97 405.22 272.60

    Fixed Deposits 0.00 0.00 146.33 72.87 57.23

    Total CA, Loans & Advances 1,431.15 1,377.26 1,413.05 1,207.75 966.04

    Current Liabilities 1,110.80 1,143.33 919.30 773.71 776.85

    Provisions 200.12 198.69 205.77 234.50 189.68

    Total CL & Provisions 1,310.92 1,342.02 1,125.07 1,008.21 966.53

    Net Current Assets 120.23 35.24 287.98 199.54 -0.49

    Miscellaneous Expenses 0.00 0.00 1.87 1.95 5.42

    Total Assets 2,181.78 2,073.89 2,116.47 1,971.96 1,633.34

    Contingent Liabilities 356.08 333.75 307.84 284.22 233.91

    Book Value (Rs) 153.56 135.33 170.46 163.61 150.94

  • Profit and Loss Account

    Mar '14 Sep '12 Sep '11 Sep '10 Sep '09

    Income

    Sales Turnover 6,291.51 3,893.88 3,268.87 2,785.86 2,197.20

    Excise Duty 0.00 0.00 26.15 22.64 18.59

    Net Sales 6,291.51 3,893.88 3,242.72 2,763.22 2,178.61

    Other Income 85.05 50.58 47.53 18.78 9.15

    Stock Adjustments 17.41 57.81 24.54 44.69 16.94

    Total Income 6,393.97 4,002.27 3,314.79 2,826.69 2,204.70

    Expenditure

    Raw Materials 4,591.61 3,003.09 2,371.26 1,935.29 1,480.97

    Power & Fuel Cost 64.03 39.47 35.22 31.99 26.25

    Employee Cost 667.35 406.12 327.92 289.24 238.43

    Other Manufacturing Expenses 0.00 0.00 37.85 36.63 19.61

    Selling and Admin Expenses 0.00 0.00 305.78 251.51 211.08

    Miscellaneous Expenses 604.69 320.77 26.72 31.78 19.48

    Total Expenses 5,927.68 3,769.45 3,104.75 2,576.44 1,995.82

    Operating Profit 381.24 182.24 162.51 231.47 199.73

    PBDIT 466.29 232.82 210.04 250.25 208.88

    Interest 110.67 96.44 70.52 51.98 61.10

    PBDT 355.62 136.38 139.52 198.27 147.78

    Depreciation 83.22 48.43 37.97 38.54 37.84

    Profit Before Tax 272.40 87.95 100.61 159.04 106.88

    Extra-ordinary items 0.00 0.00 44.26 29.95 4.34

    PBT (Post Extra-ord Items) 272.40 87.95 144.87 188.99 111.22

    Tax 27.51 18.35 19.02 50.47 21.33

    Reported Net Profit 244.89 69.60 120.09 137.55 89.73

    Total Value Addition 1,336.07 766.36 733.49 641.15 514.85

    Equity Dividend 22.06 14.71 15.84 16.20 9.07

    Corporate Dividend Tax 3.75 2.39 2.57 2.69 1.54

    Per share data (annualised)

    Shares in issue (lakhs) 1,192.63 1,192.63 1,023.04 1,022.74 907.09

    Earning Per Share (Rs) 20.53 5.84 11.74 13.45 9.89

    Equity Dividend (%) 18.00 12.00 15.00 15.00 10.00

  • Dividend History

  • Index and Company Price Movement Comparison

  • Company Forecast

  • Symbol Value Action

    RSI(14) 56.970 Buy

    STOCH(9,6) 40.323 Sell

    STOCHRSI(14) 83.733 Overbought

    MACD(12,26) 0.630 Buy

    ADX(14) 34.590 Buy

    Williams %R -33.333 Buy

    CCI(14) 107.7219 Buy

    ATR(14) 5.0214 Less Volatility

    Highs/Lows(14) 2.5607 Buy

    Ultimate Oscillator 49.468 Neutral

    ROC -0.690 Sell

    Bull/Bear Power(13) 9.5980 Buy

    Technical Indicators

  • PBIT 4.67 v/s 3.39

    RoCE 17.39 v/s 8.81

    RoE 13.37 v/s 6.67

    Net Profit Margin 3.84 v/s 1.76

    Return on net worth 13.37 v/s 4.31

    D/E Ratio 0.19 v/s 0.28

    Interest Cover 3.43 v/s 1.89

    Current Ratio 0.83 v/s 0.

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