Escorts shifts gears after compIeting divestment of auto products biz

Escorts rose 2.19% to Rs 326.80 at 12:39 IST on BSE after the company announced the completion of the divestment of its auto products business to Badve Engineering, Pune.

The announcement was made after market hours yesterday, 7 December 2016.

Meanwhile, the S&P BSE Sensex was up 389.57 points or 1.48% at 26,626.44.

On the BSE, 90,000 shares were traded on the counter so far as against the average daily volumes of 3.79 lakh shares in the past one quarter. The stock had hit a high of Rs 329.45 and a low of Rs 322 so far during the day.

The stock had hit a record high of Rs 414.20 on 4 October 2016 and a 52-week low of Rs 112.70 on 12 February 2016. It had underperformed the market over the past one month till 7 December 2016, sliding 10.56% compared with the Sensex's 4.45% fall. The scrip had, however, outperformed the market in the past one quarter, declining 5.23% as against the Sensex's 9.3% fall.

The mid-cap company has equity capital of Rs 122.58 crore. Face value per share is Rs 10.

Escorts had in August 2016, announced the divestment of its original equipment manufacturing (OEM) & export business of auto product division to Badve Engineering, Pune, in an all cash deal, as part of the planned strategic reorientation of the business to focus on core verticals in the agri machinery, construction equipment and railway equipment.

Net profit of Escorts rose 219.6% to Rs 31.29 crore on 21.7% rise in net sales to Rs 990.99 crore in Q2 September 2016 over Q2 September 2015.

Escorts is one of India's leading engineering conglomerates. The company has diversified business interests catering to agri machinery, construction equipment and railway equipment divisions.

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