Escorts: Sustaining post-festival sales momentum key for stock gains

Street will watch tractor sales post-festival season. For October, the company's tractor offtake was up 2% driven by domestic sales which came in at 13,000 units

Improvement in tractor demand in the second half of the current financial year is expected to help reverse the declining trend of sector sales. The Escorts management in an earnings call highlighted that volumes have seen an uptick in the festive season which could sustain in the near term. For October, the company reported a 2 per cent increase in tractor sales, driven by the domestic segment, which reported volumes of 13,000 units.

 While sector volumes for the first half of FY20 were 15 per cent lower, the company indicated that for FY20 sales fall would be restricted to single digits.