Shares of Escorts jumped almost 4% in Tuesday's session after the automobile major announced sales for August 2020.
Escorts reported 80.1% growth in total wholesales to 7,268 tractors in August as against 4,035 tractors sold in same month last year, owing to robust demand for tractors in the domestic market. It was the highest ever August sales recorded, Escorts said in its regulatory release.
The domestic tractor sales grew by 79.40% to 6,750 units, tractor from 3,763 units from the year-ago period. Sequentially, the domestic volumes in the month of August have grown 36% over 4,953 units reported in July. Exports also increased by 90.40% YoY to 518 units last month, as against 272 units in August 2019.
Following the release of August sales figures, Escorts stock opened at Rs 1,100 and touched an intraday high of Rs 1153.3, rising 6.09% against the previous close of Rs 1,087.05 on BSE.
Escorts share price have gained after 2 days of consecutive fall. The stock trades higher than 50, 100 and 200-day but lower than 5 and 20-day moving averages.
Escorts stock has risen 76% since the beginning of the year and 117% in a year's period. Market capitalisation of the firm stood at Rs 14,984 crore as of today's closing session."The market sentiment continues to be highly positive with good monsoons, better Kharif sowing, crop prices holding up well, and a good supply of retail finance. We remain optimistic for the coming festive months," Escorts said in a press release.
"In August 2020 we could build some inventory both at dealer and depots, which since last few months was at very low levels," it added.
Escort shares closed 2.24% higher at Rs 1,111.35 on BSE today.