⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ESCORTS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | ESCORTS | Market Cap | 34,595 Cr. | Current Price | 3,093 ₹ | High / Low | 4,180 ₹ |
| Stock P/E | 26.1 | Book Value | 1,064 ₹ | Dividend Yield | 0.91 % | ROCE | 13.7 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 3,460 ₹ | DMA 200 | 3,533 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.40 % | PAT Qtr | 403 Cr. | PAT Prev Qtr | 321 Cr. |
| RSI | 35.2 | MACD | -127 | Volume | 82,145 | Avg Vol 1Wk | 1,09,480 |
| Low price | 2,776 ₹ | High price | 4,180 ₹ | PEG Ratio | 1.38 | Debt to equity | 0.01 |
| 52w Index | 22.6 % | Qtr Profit Var | 38.7 % | EPS | 213 ₹ | Industry PE | 26.6 |
📊 Core Financials
- Revenue growth: PAT improved to 403 Cr. from 321 Cr., showing growth momentum
- Profit margins: EPS at 213 ₹, ROE 12.8%, ROCE 13.7% — moderate efficiency
- Debt ratios: Very low debt-to-equity at 0.01, nearly debt-free
- Cash flows: Profitability supports healthy cash generation
- Return metrics: ROE and ROCE slightly below industry leaders
💹 Valuation Indicators
- P/E Ratio: 26.1, in line with industry PE of 26.6, fair valuation
- P/B Ratio: ~2.9 (3,093 ₹ / 1,064 ₹), reasonable
- PEG Ratio: 1.38, slightly stretched relative to growth
- Intrinsic Value: Current price appears fairly valued
🏢 Business Model & Competitive Advantage
- Operates in agricultural machinery and equipment sector
- Competitive advantage through strong brand presence in tractors and farm equipment
- Industry demand supported by rural development and mechanization trends
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 2,900–3,000 ₹ range
- Long-Term Holding: Recommended with cautious optimism; fundamentals are stable but growth efficiency needs improvement
✅ Positive
- PAT growth of 38.7% quarter-on-quarter
- Debt-to-equity ratio at 0.01 shows near debt-free status
- Dividend yield at 0.91% provides shareholder returns
⚠️ Limitation
- ROE (12.8%) and ROCE (13.7%) are moderate compared to peers
- PEG ratio at 1.38 suggests valuation slightly stretched
- Stock trading below DMA 50 (3,460 ₹) and DMA 200 (3,533 ₹), showing weak momentum
📰 Company Negative News
- FII holding decreased (-0.02%)
- Stock corrected from 52-week high of 4,180 ₹
- RSI at 35.2 indicates oversold conditions
🌟 Company Positive News
- PAT increased to 403 Cr. from 321 Cr.
- DII holding increased (+0.40%)
- Dividend yield at 0.91% adds shareholder value
🏭 Industry
- Industry PE at 26.6, ESCORTS trades in line with peers
- Sector benefits from rural mechanization, government support, and agricultural growth
🔎 Conclusion
- ESCORTS shows stable fundamentals with consistent profitability and minimal debt
- Valuation is fair compared to industry peers, though efficiency metrics are moderate
- Recommended for long-term holding, with entry near 2,900–3,000 ₹ offering attractive risk-reward potential