Emkay upgrades Escorts to Buy, sees 21.3% upside from current share price

Emkay Global has upgraded its rating on Escorts to ‘Buy’ with a target price of ₹4,700, indicating a 21.3% upside from the current market price of ₹3,873.15. The brokerage values Escorts at 30 times its projected September 2026 price-to-earnings ratio, plus ₹320 per share in cash.

Emkay highlights that the recently concluded monsoon season has lifted the outlook for the upcoming crop cycles, providing a favorable environment for the agricultural equipment sector. Additionally, a favorable industry base and Escorts’ intent to increase sourcing from India are seen as key mid-to-long-term growth drivers for the company.

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The brokerage is optimistic about Escorts’ future prospects, with a focus on both domestic demand growth and the company’s strategic initiatives aimed at enhancing efficiency and profitability.

Disclaimer: This information is for informational purposes only and should not be considered as investment advice.