Escorts scrip bounces back to register 19% rise on seasonal tractor demand

Even as the sector's volumes fell by 1% over the year-ago period due to heavy rains, Escorts reported 2% increase. The near-term outlook for the sector remains strong

Even as auto stocks continue to feel the pressure of falling volumes and muted outlook, the Escorts scrip has bounced back over the past three weeks to register gains of 19 per cent. Led by seasonal demand for tractors, the company was the only one in the listed space to report year-on-year (YoY) volume growth in September. Even as the sector’s volumes fell by 1 per cent over the year-ago period due to heavy rains, Escorts reported 2 per cent increase. The near-term outlook for the sector remains strong. 

Naveen Kumar Dubey and Swati Singh of Narnolia Financial Advisors believe