ESCORTS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | ESCORTS | Market Cap | 36,266 Cr. | Current Price | 3,242 ₹ | High / Low | 4,180 ₹ |
| Stock P/E | 27.4 | Book Value | 1,064 ₹ | Dividend Yield | 0.86 % | ROCE | 13.7 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 3,256 ₹ | DMA 200 | 3,434 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.54 % | PAT Qtr | 403 Cr. | PAT Prev Qtr | 321 Cr. |
| RSI | 52.0 | MACD | 39.0 | Volume | 86,314 | Avg Vol 1Wk | 96,699 |
| Low price | 2,710 ₹ | High price | 4,180 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.01 |
| 52w Index | 36.2 % | Qtr Profit Var | 38.7 % | EPS | 213 ₹ | Industry PE | 27.8 |
Financials & Valuation:
ESCORTS shows balanced fundamentals. ROCE (13.7%) and ROE (12.8%) indicate moderate efficiency. EPS of 213 ₹ supports profitability, with quarterly PAT rising to 403 Cr. from 321 Cr., reflecting strong earnings momentum. Debt-to-equity is very low at 0.01, ensuring financial stability.
Valuation Indicators:
P/E ratio of 27.4 is in line with the industry average (27.8), suggesting fair valuation. Book Value of 1,064 ₹ compared to current price of 3,242 ₹ shows premium pricing. PEG ratio of 1.45 indicates reasonable valuation relative to growth. Dividend yield of 0.86% provides modest income support.
Business Model & Health:
ESCORTS, a leader in agricultural machinery and construction equipment, benefits from rural demand and mechanization trends. Strong profitability, low leverage, and rising FII holdings (+0.46%) reinforce overall health, though DII holdings declined (-0.54%).
Entry Zone & Holding Guidance:
Technically, support lies around 3,150–3,200 ₹, with resistance near 3,400–3,450 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is justified given strong fundamentals, though moderate efficiency metrics should be monitored.
Positive
- Strong EPS (213 ₹) with PAT growth.
- Very low debt-to-equity (0.01).
- FII holdings increased (+0.46%).
- PEG ratio (1.45) indicates fair valuation.
Limitation
- ROCE (13.7%) and ROE (12.8%) are moderate.
- Dividend yield remains modest at 0.86%.
- DII holdings declined (-0.54%).
- Current price trades at premium to book value.
Company Negative News
- Decline in DII holdings.
- Moderate efficiency metrics compared to peers.
Company Positive News
- Quarterly PAT surged to 403 Cr. from 321 Cr.
- FII holdings increased, reflecting foreign investor confidence.
- Strong demand outlook in agricultural machinery.
Industry
- Agricultural and construction equipment sector benefits from rural growth and mechanization.
- Industry PE (27.8) aligns with ESCORTS, supporting fair valuation.
- Long-term growth supported by infrastructure and rural demand.
Conclusion
ESCORTS is fundamentally stable with strong earnings, low debt, and fair valuation. Entry near 3,150–3,200 ₹ offers a favorable setup. Long-term investors can hold with confidence, supported by industry growth, while monitoring moderate efficiency metrics and institutional holding trends.
Would you like me to extend this into a sector overlay comparison against peers like Mahindra & Mahindra, VST Tillers, and TAFE to highlight ESCORTS’ relative positioning in agricultural machinery?