Escorts share price hit all-time high today after the farm equipment and engineering products maker logged a 21.1 per cent year-on-year rise in its June tractor sales. Ace investor Rakesh Jhunjhunwala held 91 lakh shares or 7.42% stake in Escorts at the end of March quarter. Jhunjhunwala first bought 50 lakh shares of the company in the September 2013 quarter.
Escorts share gained 2.18% intraday to Rs 1,069 against the last closing value of Rs 1,040. Later, the stock closed 0.64% lower at Rs 1033. The stock has fallen after 2 days of consecutive gain. Escorts share trades higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Escorts share has gained 81% during last one year and 64% since the beginning of this year. Escorts stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 1.94 lakh shares changed hands on BSE amounting to turnover of Rs 20.15 crore. Market cap of the firm stood at Rs 12,668 crore. The rise in share price came after the firm reported tractor sales of 10,851 units in June against 8,960 units in the same month last year.
Tractor sales climbed on robust demand from rural areas.
The Faridabad-based agricultural machinery manufacturer logged a 23 per cent rise in its domestic tractor sales at 10,623 in June, against 8,648 units sold in the same month last year.
However, company's exports during June fell 26.9 per cent at 228 units against 312 units in the year-ago period.
"We have seen unprecedented demand this month. The industry is expected to grow significantly, backed by pent-up demand of the lockdown period, better farmer sentiment due to good monsoon prediction reflected in better than normal Kharif sowing, better rural cash flows owing to record crop output and crop prices, and reasonably good availability of retail finance," the company said.
The industry is witnessing widespread growth in almost all markets barring one or two, it added.
By Aseem Thapliyal
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