Escorts stock gains on tractor sales uptick, Budget 2020 proposals

Analysts expect tractors to benefit the most from rural revival

After a strong showing in the December quarter of FY20, Escorts has reported steady sales volume in January, which should keep its stock prices high. 

The stock gained about 9 per cent on Monday on the back of recent tractor sales and Budget proposals to boost rural infrastructure and income.

The proposals in the Budget are expected to boost irrigation infrastructure, higher allocation to farm credit and farm realisations.

On the demand front, the company expects a recovery in tractor sales in the domestic market. Tractor industry volumes, which were down 6 per cent year on year in the quarter ended December 31,