06 Aug , 2021 By : Kanchan Joshi
Rakesh Jhunjhunwala portfolio: On account of Escorts' Q1 FY22 results beating the market estimates, stock experts have given buy tag to this Rakesh Jhunjhunwala holding company. They said that India Meteorological Department (IMD) has predicted timely monsoon that augurs well for the tractor manufacturer company. Experts went on to add that Escorts share price has remained range-bound for the last one month and it has started showcasing upside bias in the last few trade sessions. It is poised to give a breakout at Rs1330 levels, experts said.
Expecting fresh breakout in Escorts shares; Sumeet Bagadia, Executive Director at Choice Broking said, "Escorts share price was trading range-bound for the last one month. But, in last few trade sessions, the tractor manufacturer company has shown some upside movement and is ready to give a fresh breakout at Rs1330 levels."
Speaking on the reason for rise in this Rakesh Jhunjhunwala portfolio stock; Ravi Singhal, Vice Chairman at GCL Securities said, "IMD has predicted timely monsoon that will fuel tractor sales of this Rakesh Jhunjhunwala company. Company's fundamentals are also looking strong as its Q1 Fy22 results reported EBITDA margin at 14 per cent, above market estimate of 12.8 per cent due to inventory gains and cost savings. Escorts revenue stood at Rs16.7 bn, which is slightly above the market estimates of Rs16.4 bn." Singhal said that due to the strong fundamentals and IMD prediction favouring tractor sales of Escorts, one can buy Escorts shares at current market price for long term.
On what should be the ideal strategy for taking position in Escorts shares; Sumeet Bagadia of Choice Broking said, "One can buy Escorts at current market price for short term target of Rs1380 maintaining stop loss at Rs1197. One can hold the counter for medium term target of Rs1430 to Rs1440 as well because after giving breakout at Rs1330, it will go around 100 to 110 points higher in next 3 months."
Rakesah Jhunjhunwala holdings in Escorts
As per the Escorts shareholding pattern for June 2021, Rakesh Jhunjhunwala holds around 4.8 per cent Escorts shares in the company. It should be noted that the 'Big Bull' has kept his stake in the auto company unchanged from March 2021 quarter that reflects the strong conviction, which Rakesh Jhunjhunwala has in this auto company stock. In fact, the 'Warren Buffett of India' had kept his stake in this tractor manufacturer company unchanged in March 2021 quarter too as his holding in the company was at same 4.8 per cent in December 2020 quarter.
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