ESCORTS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | ESCORTS | Market Cap | 32,659 Cr. | Current Price | 2,920 ₹ | High / Low | 4,180 ₹ |
| Stock P/E | 24.0 | Book Value | 1,108 ₹ | Dividend Yield | 0.96 % | ROCE | 15.9 % |
| ROE | 12.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,153 ₹ | DMA 200 | 3,379 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.54 % | PAT Qtr | 325 Cr. | PAT Prev Qtr | 403 Cr. |
| RSI | 38.4 | MACD | -77.2 | Volume | 99,636 | Avg Vol 1Wk | 1,55,856 |
| Low price | 2,710 ₹ | High price | 4,180 ₹ | PEG Ratio | 0.92 | Debt to equity | 0.01 |
| 52w Index | 14.3 % | Qtr Profit Var | 14.2 % | EPS | 215 ₹ | Industry PE | 25.0 |
📊 Financials: ESCORTS shows moderate fundamentals. Quarterly PAT declined to 325 Cr from 403 Cr, reflecting margin pressure. ROCE at 15.9% and ROE at 12.0% are decent but below top-tier peers. EPS stands at 215 ₹, supporting strong earnings per share. Debt-to-equity is very low at 0.01, indicating a virtually debt-free balance sheet and stable cash flows.
💰 Valuation: The stock trades at a P/E of 24.0, close to the industry average of 25.0, suggesting fair valuation. Book value is 1,108 ₹, with current price at 2,920 ₹, implying a P/B ratio of ~2.6. PEG ratio of 0.92 indicates valuation is reasonable relative to growth. Intrinsic value appears aligned with current levels, suggesting fair pricing.
🚜 Business Model & Health: ESCORTS operates in tractors, construction equipment, and railway products. Competitive advantage lies in diversified product offerings and strong rural demand base. Overall health is stable, supported by profitability, low debt, and brand presence, though earnings volatility remains a concern.
📈 Entry Zone: RSI at 38.4 indicates near oversold levels. Support is near 2,710 ₹, resistance at 4,180 ₹. Entry around 2,750–2,850 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals, but investors should monitor earnings consistency and demand cycles.
Positive
- 🚜 [Diversified Portfolio](ca://s?q=ESCORTS_product_portfolio): Presence in tractors, construction, and railway equipment.
- 📈 [Profitability](ca://s?q=ESCORTS_profitability): EPS of 215 ₹ reflects strong earnings base.
- 💸 [Low Debt](ca://s?q=ESCORTS_debt_levels): Debt-to-equity ratio of 0.01 ensures financial stability.
Limitation
- 📉 [Profit Decline](ca://s?q=ESCORTS_profit_decline): PAT dropped from 403 Cr to 325 Cr.
- ⚠️ [Return Metrics](ca://s?q=ESCORTS_return_metrics): ROCE and ROE are moderate compared to peers.
- 📊 [DII Outflow](ca://s?q=ESCORTS_DII_outflow): Domestic institutions reduced holdings by -0.54%.
Company Negative News
- 📉 [Quarterly Decline](ca://s?q=ESCORTS_quarterly_decline): PAT fell compared to previous quarter.
- 📊 [DII Reduction](ca://s?q=ESCORTS_DII_reduction): Decline in domestic institutional holdings.
Company Positive News
- 📈 [FII Inflow](ca://s?q=ESCORTS_FII_inflow): Foreign investors increased holdings by 0.46%.
- 💹 [Stable Valuation](ca://s?q=ESCORTS_stable_valuation): P/E aligned with industry average.
Industry
- 🚜 [Agriculture Demand](ca://s?q=Indian_agriculture_demand): Tractor demand driven by rural growth and mechanization.
- 📊 [Industry PE](ca://s?q=Automobile_industry_PE): Sector average P/E is 25.0, close to ESCORTS’s valuation.
Conclusion
✅ ESCORTS demonstrates stable fundamentals, profitability, and minimal debt, making it a fundamentally sound investment. While earnings have declined, valuations remain fair compared to peers. Entry around 2,750–2,850 ₹ is favorable, and long-term holding is recommended given the company’s diversified portfolio, strong brand, and rural demand outlook.