Emkay Global Financial retains 'buy' on Escorts with ₹3,200 target
Business
Emkay Global Financial is still backing Escorts, giving it a "buy" rating and aiming for a ₹3,200 share price.
The company just posted solid Q2 results: revenue jumped 16% from last year, thanks to big gains in construction equipment (up 59%) and agriculture products (up 11%).
Escorts margins 9.1%, plans price hikes
Even with strong sales, Escorts struggled with rising costs: its profit margins dropped to 9.1%.
To handle this, the company raised prices by around 4% and plans more hikes from mid-Nov, post-festive season.
Despite trimming future earnings forecasts by up to 21%, Emkay sees long-term value in Escorts.