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Target Price

The Current Market Price (CMP) of Escorts is Rs. 217 The brokerage firm, Emkay Global has estimated a Target Price for the stock at Rs. 290. Hence the stock is expected to give an 18.7% return, in a Target Period of 1 year.

Company performance

In FY 21, the company’s revenue stood at Rs. 69,293 mn, EBITDA was Rs. 11,292 mn, while APAT stood at 8,741. In FY 22, the brokerage firm is expecting the revenue to grow to Rs. 75,056 mn. Additionally, Escorts’ board announced Kubota (a 9% shareholder) will acquire 46.9mn additional shares through preferential allotment plus open offer, and join the Nandas as a co-promoter. Emkay Global is expecting, “Kubota’s takeover will substantially improve Escorts’ medium-term growth outlook, based on: 1) localization of existing tractor imports currently done by Kubota’s India JV; 2) leveraging Escorts for global component supplies to support Kubota’s global sales; 3) technology support in construction equipment, farm implements, and high-end tractors.”

Comments by Emkay Global

According to Emkay Global, “We are increasing Escorts’ medium-term (FY23-31E) revenue CAGR to 15% from 11%, with enhanced market presence in the domestic tractor market upon expansion of the product portfolio, especially in wet-land applications, which represent more than 10% of industry volumes, and for higher exports by leveraging Kubota’s global distribution network.”

About the company

Escorts is India’s one of the biggest tractor manufacturers and suppliers. Their productions are outspread in the fields of Agri Machinery, Construction Equipment, and Railway Equipment. With Kubota’s stake hike in the company, it will have a better exposure both on the domestic and the international fronts.

Disclaimer

The above stock was picked from the brokerage report of Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

1. Latent View Analytics:

The data analytics company with no listed peer has seen a marvelous listing gain and indeed turned into a multibagger on the listing day (November 23, 2021). The scrip as against the issue price of Rs. 197 per share opened at a premium of 160 percent at Rs. 512.2 on the NSE. The IT services and consulting firm continues to see gains for the second day in a row and settled today at Rs. 584.95 climbing over 19 percent in trade today. Last the scrip commanded a market cap of Rs. 11,571 crore.

An important point that cannot be overlooked is that the IPO of Latent View broke all previous records and garnered a massive subscription to the tune of 339 times.

The leading player in Data and Analytics segment is a trusted partner to Fortune 500 clienteles. Adhering to quality corporate governance policies the company excels in Digital Solution Accelerators, Big Data Capabilities, Social Media Predictive Analytics and Analytics Tools.

The scrip of Latent View Analytics has been given a ‘Hold’ call by experts given the huge scope in the field going ahead, strong margins with more than 20 percent RoE etc.

2. Sigachi Industries:

The pharma and drugs entity that debuted on November 15, 2021 saw a historic listing which was the biggest ever gains on the D-Street. The stock as against the issue price of Rs. 163, opened the first trade at Rs. 575 apiece on the BSE, a spectacular premium of 253%.

Hyderabad-based Sigachi Industries is an industry leader in the field of Pharma Excipients, Nutra and food ingredients. Incorporated in the year 1989, the firm is among the largest manufacturers of Microcrystalline Cellulose (MCC) worldwide. This MCC has applications across varied industries including pharma, cosmetic, food and nutraceuticals.

3. Paras Defence and Technologies:

The defence sector company also had a blockbuster listing on October 1, 2021. As against the issue price of Rs. 175, the stock debuted on the NSE at a price of Rs. 469, a premium of 168 percent.

If you had been allotted 1 lot (85 shares) on your IPO application and continued with it till now, your investment into the scrip is worth currently 60,907. This though entailed an initial investment of just Rs. 175* 85 share =14,875.

Mumbai-based Premier Make in India Company has exclusive capabilities from Concept to Commissioning in the area of Defence Electronics, Defence & Space Optics and ..Defence Heavy Engineering. We are the only company in India to manufacture Infrared Optics in large quantities. Furthermore, Paras is the only Indian company supplying critical imaging components including large sized optics for space applications.

4. Tatva Chintan Pharma Chem:

The speciality chemicals company made its way to the D-Street on July 29, 2021.In comparison to the issue price of Rs. 1083, the stock with a premium of 95% listed at a price of Rs. 2111.8 on the BSE.

Just 4 months after the listing, the stock as on November 24 closed at a price of Rs. 2626.2, implying return to the tune of 142 percent. The stock’s 52-week high price is Rs. 2977.8.

Tatva Chintan is engaged in the manufacture of a diverse portfolio of structure directing agents (“SDAs”), phase transfer catalysts (“PTCs”), electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (“PASC”). Moreover, it is the largest and only commercial manufacturer of SDAs for zeolites in India.

5. GR Infraprojects:

The company from the construction -infrastructure space debuted on the Indian stock exchanges on July 19, 2021. In comparison to the issue price of Rs. 837, the scrip kicked off opening trade at a price of Rs. 1715.85 on NSE, a gain of 105% premium from the issue price. Currently, the scrip trades at a price of Rs. 1850.9, which is a substantial gain of 121 percent from the issue price in just 4 months since listing.

Udaipur-based GR Infraprojects is an integrated road engineering, procurement, and construction (EPC) company. The company has experience into designing and construction of several road and highway projects and of late it has even diversified into the railways sector.

Apart from the above listed scrips there are other newly listed entities that have given multibagger returns in some months time including the likes of Laxmi Organic, Stove Kraft, Clean Science, Barbeque Nation, Macrotech Developers and Nazara Technologies.

New company listings that turned into multibagger stocks