Flash News Investment - - RECOMMENDATIONS -

{Ticker : 500495 { BUY: ₹694.30 { Tar­get: ₹798

Es­corts Lim­ited is an en­gi­neer­ing com­pany which of­fers agri­cul­tural trac­tors and con­struc­tion equip­ments. In Q2FY19, the com­pany’s rev­enue in­creased by 15.4 per­cent YoY, led by strong growth in rail­way equip­ment and con­struc­tion seg­ments. Do­mes­tic trac­tor vol­umes grew by 4 per cent YoY and the man­age­ment has guided 12-15 per cent growth in FY19. The fes­tive sea­son will lead to uptick in de­mand dur­ing H2FY19 and ex­ports might grow by 50 per cent in FY19. The con­struc­tion equip­ment and rail­way equip­ment seg­ments are ex­pected to grow by 30 per cent each in FY19. The EBITDA and PAT for the quar­ter were up by 11.8 per cent and 32.3 per cent YoY, re­spec­tively. The rail­way seg­ment has bagged or­ders worth Rs 400 crore which are to be ex­e­cuted in the next 12-13 months. Con­sid­er­ing all these fac­tors, we rec­om­mend it as a BUY.

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