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ESCORTS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | ESCORTS | Market Cap | 39,039 Cr. | Current Price | 3,489 ₹ | High / Low | 4,180 ₹ |
| Stock P/E | 32.2 | Book Value | 1,064 ₹ | Dividend Yield | 0.80 % | ROCE | 13.7 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 3,642 ₹ | DMA 200 | 3,567 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.40 % | PAT Qtr | 321 Cr. | PAT Prev Qtr | 315 Cr. |
| RSI | 42.6 | MACD | -86.1 | Volume | 1,10,158 | Avg Vol 1Wk | 1,14,037 |
| Low price | 2,776 ₹ | High price | 4,180 ₹ | PEG Ratio | 1.70 | Debt to equity | 0.01 |
| 52w Index | 50.8 % | Qtr Profit Var | 6.12 % | EPS | 209 ₹ | Industry PE | 32.8 |
📊 Core Financials
- Revenue growth: Stable, PAT at 321 Cr vs 315 Cr in previous quarter, showing modest improvement.
- Profit margins: EPS at 209 ₹ indicates strong earnings, though ROE (12.8 %) and ROCE (13.7 %) are moderate.
- Debt ratios: Excellent, debt-to-equity at 0.01 shows negligible leverage.
- Cash flows: Supported by consistent profitability and low debt burden.
- Return metrics: Moderate efficiency compared to industry leaders.
💹 Valuation Indicators
- P/E ratio: 32.2, in line with industry average (32.8), fairly valued.
- P/B ratio: Current Price / Book Value ≈ 3.3, reasonable relative to assets.
- PEG ratio: 1.70, indicates valuation is moderately stretched relative to growth.
- Intrinsic value: Fairly valued, supported by strong earnings but limited growth momentum.
🏢 Business Model & Competitive Advantage
- Operates in agricultural machinery and construction equipment sector.
- Strong brand presence in tractors and farm equipment.
- Competitive advantage through diversified product portfolio and rural demand base.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 2,800–3,100 ₹ levels, closer to 52-week low support.
- Long-term holding: Favorable due to strong brand and low debt, though moderate ROE/ROCE suggests cautious optimism.
Positive
- EPS at 209 ₹ reflects strong earnings.
- Negligible debt-to-equity ratio (0.01).
- Dividend yield at 0.80 % provides steady income.
- DII holdings increased (+0.40 %).
Limitation
- ROE (12.8 %) and ROCE (13.7 %) are moderate compared to peers.
- PEG ratio at 1.70 indicates stretched valuation relative to growth.
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
Company Negative News
- FII holdings decreased (-0.02 %).
- Technical indicators weak: RSI at 42.6, MACD negative.
- Stock corrected from 52-week high of 4,180 ₹.
Company Positive News
- Quarterly PAT improved (321 Cr vs 315 Cr).
- Strong fundamentals with consistent profitability.
- Low debt ensures financial stability.
Industry
- Agricultural machinery sector supported by rural demand and government initiatives.
- Industry PE at 32.8, close to ESCORTS’s P/E, suggesting fair valuation.
Conclusion
- ESCORTS demonstrates solid fundamentals with strong earnings and negligible debt.
- Valuation is fair compared to industry peers, though growth efficiency is moderate.
- Entry advisable near lower support levels; long-term holding recommended for investors seeking exposure to agricultural and construction equipment growth.
Would you like me to also prepare a comparative HTML snapshot against peers like Mahindra & Mahindra and VST Tillers to highlight ESCORTS’s relative valuation and strengths?