The Escorts stock rose over 3% in trade today after the engineering and farm equipment maker reported a 92.7 per cent increase in its net profit at Rs 120.7 crore for the first quarter ended June 30 on robust sales across segments. The company had reported a net profit of Rs 62.6 crore for the corresponding quarter of the previous fiscal.
At 10:50 am, the Escorts stock was trading 3.59% or 32.55 points higher at 939.75 on the BSE.
The market capitalisation of the firm rose to Rs 11,485 crore on BSE.The stock has gained over 40% in the last one year and 19% since the beginning of this year.
The stock hit its 52-week high of 1018.50 level on May 2, 2018 and 52-week low of 544.55 on August 11, 2017. It hit an intra day high of 943.60 on the BSE.
Credit Suisse has increase the target price of the stock to Rs 1230 from Rs 1170. The brokerage continues to prefer Escorts as its top mid-cap pick, it said. Higher tractor and construction equipment volumeand slightly better margins in railways led to a 4-5% increase in FY19/20E earnings, it said.
Revenue from operations rose by 29.9 per cent to Rs 1,511.3 crore as compared with the same period of previous fiscal, Escorts said.
"Apart from our focus on advanced technologies such as electric and autonomous tractors, we are partnering global IT, engineering and technology driven firms to develop products that will fundamentally change the way in which farming is done," Escorts Managing Director Nikhil Nanda said.
Similarly, the company's focus on urban smart infrastructure and safe railway transport segments is tapping into technology driven sectors, he added.
The company's tractor sales in the quarter ended June 30, stood at 24,494 units, up 39.5 per cent from 17,561 tractors in same period of previous fiscal. Similarly, construction equipment sales during the first quarter rose by 51.8 per cent to 1,345 units.
Meanwhile, the Sensex was trading 156 points or 0.42% lower and the Nifty was down 0.36% or 41 points at 11,277.
This marks an end to the six session rally which catapulted the market to its all time high levels yesterday.
Written and edited by Aseem Thapliyal