Buy Escorts For Short Term: Nirmal Bang

EscortsNirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on Escorts Ltd with a target of Rs 94 in the short term.

The report further stated that, if the counter is successful to breach Rs 87, then it will create a huge breakout

In addition, the firm has suggested a support level for the scrip at Rs 79.

Today (Sep 17), the shares of the company opened at Rs 85.50 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 3.14 & 26.42 respectively. The share price has seen a 52-week high of Rs 89.40 and a low of Rs 30.65 on BSE.

Escorts, a top engineering company, is anticipating to record an income of Rs 2,300 crore as of September 2010 as against Rs 2,000 crore now, on account of fresh products, particularly diesel generators.

Moreover, Escorts Ltd is also eyeing to establish a diesel generator production line in Ghana.

At present, it is looking for a local partner in Ghana, and the company is making discussions with the Ghana administration.

During the last month (Aug 09), Escorts has nominated O. K. Balraj as its chief financial officer (CFO).

Previously, Mr. Balraj was working with NSL Group as its group director (Finance).

Prior to Mr. Balraj, Rakesh Kumar Budhiraja was the company's group CFO.