Escorts Ltd realizes Rs 1,872.74 crore through preferential allotment of equity

Escorts Ltd realizes Rs 1,872.74 crore through preferential allotment of equity

by 5paisa Research Team Last Updated: 2022-02-22T09:38:51+05:30

Japanese tractor manufacturer Kubota Corp buys a 16.39% stake.  

Escorts Ltd has created a buzz today on Dalal Street as the company has realized Rs 1,872.74 crore from Kubota Corp against a preferential allotment of 93.63 lakh equity shares. The allotment price was at Rs 2,000 per share. Kubota Corporation is a Japanese tractor manufacturing company that will now be holding about a 16.39% stake in Escorts Ltd. However, the stock price was trading flat today.

Looking at the financials, in Q3FY22, revenue decreased by 2.84% YoY to Rs 1984.28 crore from Rs 2042.23 crore in Q3FY21. On a sequential basis, the top-line was up by 18.55%. PBIDT (Ex OI) was reported at Rs 264.51 crore, down by 27.11% as compared to the year-ago period and the corresponding margin was reported at 13.33%, contracting by 444 basis points YoY. PAT was reported at Rs 193.71 crore, down by 32.37% from Rs 286.42 crore in the same quarter for the previous fiscal year. The PAT margin stood at 9.76% in Q3FY22 contracting from 14.02% in Q3FY21.

Going ahead, we might see this capital goods company hitting the trending list as the Union Budget 2022 had a high focus on capex heavy sectors which might augur well for the company.

Escorts Ltd is a leading material handling and construction equipment, and tractor manufacturer. The company today is the world’s largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer. The stocks price has a 52-week high of Rs 1,927.35 and a 52-week low of Rs 1,100.10. As of 21 February 2022, the stock closed at Rs 1,863.20, slightly up by 0.16% on the BSE.

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