Rakesh Jhunjhunwala stocks: This tractor maker stock to deliver double digit returns, experts say buy today
Rakesh Jhunjhunwala stocks: The Big Bull has a shareholding in 39 stocks overall in his portfolio and Escorts is one of them. Jhunjhunwala holds 64 lakh Escorts shares, which is 4.75 per cent of the net shares (as per Escorts shareholding data for December 2020 available on BSE).
Rakesh Jhunjhunwala stocks: The Big Bull has a shareholding in 39 stocks overall in his portfolio and Escorts is one of them. Jhunjhunwala holds 64 lakh Escorts shares, which is 4.75 per cent of the net shares (as per Escorts shareholding data for December 2020 available on BSE). As per Escorts share price history, the tractor maker stock has made its one month low at around Rs 1280 while its one month high is Rs 1423. Escorts share price is trading in the range of Rs 1280 to Rs 1450 with a positive bias currently. Stock market experts have advised investors to buy after a 4-5 per cent dip in Escorts share price today at around Rs 1375 for the one month target of Rs 1450.
Speaking on the Escorts share price target Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Leading tractor maker Mahindra & Mahindra (M&M) has recently said that the tractor industry is poised to grow by at least 20 per cent. Escorts being the second tractor market leader after M&M, will definitely make moolah of this rise in the tractor industry and that will get reflected in the Escorts share price rally."
Apart from this, Gorakshkar went on to add that the tractor industry will get the benefit of lower interest rate being provided by the central government. So, more farmers are expected to buy tractors that will fuel tractor sales. He said that one can maintain a 'buy on dips' strategy in Escorts share price as it may witness some profit-booking from Escorts share price today that is at Rs 1375 per stock levels.
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Highlighting the major levels for Escorts share price, Sumeet Bagadia, Executive Director at Choice Broking said, "Escorts share price has strong support at Rs 1280 and one can buy Escorts shares from Rs 1330 to Rs 1350 for the one-month target of Rs 1450 to Rs 1500." However, Bagadia strictly advised investors to maintain the stop loss at around Rs 1280 while taking buy position in Escorts shares.
Highlighting the fundamentals that will support Escorts share price for an upside bias, Angel Broking research team reports, "Escorts is a prominent tractor player domestically with market share in excess of 11 per cent. With rural India relatively less impacted due to Covid-19, record food-grain procurement by government agencies as well as better than expected Kharif crop in 2020, we expect the tractor industry will continue to outperform the larger automobile space in FY21. The company has also reported a strong growth of 25.7 per cent YoY in Q3FY21, which is expected to continue into the fourth quarter driven by strong demand."
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