Buy Escorts With Stop Loss Of Rs 159

EscortsTechnical analyst Anil Manghnani of Modern Shares and Stockbrokers has maintained 'buy' rating on Escorts Limited stock with a target of Rs 185.

According to analyst, the investors can buy the stock with a stop loss of Rs 159.

The stock of the company, on December 27, closed at Rs 167.30 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 245.95 and a low of Rs 119 on BSE.

Current EPS & P/E ratio stood at 11.89 and 14.07 respectively.

Escorts Ltd showed a poor performance for the three month period ended September 2010.

Tractor manufacturer had an operationally feeble July-September period.

Its operating margins dropped harshly to 4.9% owing to an increase in other expenditures.

Escorts Group company, Escorts Construction Equipment is eyeing to record a 17% increase in its gross sales to Rs 750 crore during the existing fiscal year.

Mr. Rajesh Sharma VP and head of marketing of Escorts Construction Equipment Limited stated that Escorts follows the October to September fiscal year.

"Gross sales will be about INR 750 crore this year. Last year it was INR 640-crore. The industry is growing annually at about 10 to 15%. We will grow faster than that," Mr. Sharma added.