NSEI:ESCORTS

Stock Analysis Report

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Executive Summary

Escorts Limited manufactures and sells agri machinery, construction equipment, and railway equipment in India and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Escorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESCORTS is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ESCORTS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

ESCORTS

2.5%

IN Machinery

3.2%

IN Market


1 Year Return

62.2%

ESCORTS

47.6%

IN Machinery

40.6%

IN Market

Return vs Industry: ESCORTS exceeded the Indian Machinery industry which returned 47.6% over the past year.

Return vs Market: ESCORTS exceeded the Indian Market which returned 40.6% over the past year.


Shareholder returns

ESCORTSIndustryMarket
7 Day0.6%2.5%3.2%
30 Day-5.8%5.7%4.2%
90 Day-5.7%23.6%14.8%
1 Year62.6%62.2%50.2%47.6%43.1%40.6%
3 Year56.3%54.9%11.0%5.9%29.1%22.5%
5 Year914.6%899.5%73.8%62.4%93.4%78.3%

Long-Term Price Volatility Vs. Market

How volatile is Escorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Escorts undervalued compared to its fair value and its price relative to the market?

16.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESCORTS (₹1318.8) is trading above our estimate of fair value (₹592.06)

Significantly Below Fair Value: ESCORTS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ESCORTS is good value based on its PE Ratio (16.4x) compared to the IN Machinery industry average (22.8x).

PE vs Market: ESCORTS is good value based on its PE Ratio (16.4x) compared to the Indian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ESCORTS is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ESCORTS is overvalued based on its PB Ratio (2.8x) compared to the IN Machinery industry average (1.4x).


Next Steps

Future Growth

How is Escorts forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESCORTS's forecast earnings growth (11.2% per year) is above the savings rate (7%).

Earnings vs Market: ESCORTS's earnings (11.2% per year) are forecast to grow slower than the Indian market (25.3% per year).

High Growth Earnings: ESCORTS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ESCORTS's revenue (12.4% per year) is forecast to grow slower than the Indian market (14.5% per year).

High Growth Revenue: ESCORTS's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESCORTS's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Escorts performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESCORTS has high quality earnings.

Growing Profit Margin: ESCORTS's current net profit margins (11.9%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: ESCORTS's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: ESCORTS's earnings growth over the past year (59.1%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: ESCORTS earnings growth over the past year (59.1%) exceeded the Machinery industry -7.9%.


Return on Equity

High ROE: ESCORTS's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Escorts's financial position?


Financial Position Analysis

Short Term Liabilities: ESCORTS's short term assets (₹42.3B) exceed its short term liabilities (₹17.5B).

Long Term Liabilities: ESCORTS's short term assets (₹42.3B) exceed its long term liabilities (₹1.5B).


Debt to Equity History and Analysis

Debt Level: ESCORTS's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: ESCORTS's debt to equity ratio has reduced from 25.3% to 0.2% over the past 5 years.

Debt Coverage: ESCORTS's debt is well covered by operating cash flow (13171.7%).

Interest Coverage: ESCORTS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Escorts's current dividend yield, its reliability and sustainability?

0.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESCORTS's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: ESCORTS's dividend (0.19%) is low compared to the top 25% of dividend payers in the Indian market (1.77%).


Stability and Growth of Payments

Stable Dividend: ESCORTS is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: ESCORTS is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ESCORTS is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ESCORTS's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Nikhil Nanda

7.5yrs

Tenure

₹111,300,000

Compensation

Mr. Nikhil Nanda has been the Managing Director of Escorts Limited since September 2013 and its Chairman since August 7, 2018. Mr. Nanda served as Joint Managing Director of Escorts Ltd. from September 200...


CEO Compensation Analysis

Compensation vs Market: Nikhil's total compensation ($USD1.52M) is above average for companies of similar size in the Indian market ($USD461.88K).

Compensation vs Earnings: Nikhil's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nikhil Nanda
Chairman & MD7.5yrs₹111.30m0.93%
₹ 1.6b
Bharat Madan
Group CFO & Corporate Headno data₹21.74mno data
Satyendra Chauhan
Chief GM of Legal & Secretarial1.25yrs₹7.58mno data
Nitasha Nanda
Head of Group Investment Companies & Whole-Time Director6.17yrs₹26.50m0.15%
₹ 255.1m
Shailendra Agrawal
Executive & Non-Independent Director2yrs₹32.30mno data
Sharad Gupta
Group Head of Corporate Marketing & Brand Communicationsno datano data0.000060%
₹ 104.3k
Amit Singhal
Group Chief Human Resources Officer & Dy. Corporate Head0.17yrno datano data
N. Rane
Head of Component Plant & CHDno data₹7.05mno data
Dipankar Ghosh
Chief Executive Officer of Railway Equipment Divisionno datano datano data
Shenu Agarwal
Chief Executive Officer of Escorts Agri Machinery3.17yrsno datano data
Ajay Mandahr
Chief Executive Officer of Escorts Construction Equipment4.42yrsno data0.0011%
₹ 2.0m
Prateek Singhal
Financial Analyst & Investors Relationsno datano datano data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: ESCORTS's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nikhil Nanda
Chairman & MD7.5yrs₹111.30m0.93%
₹ 1.6b
Nitasha Nanda
Head of Group Investment Companies & Whole-Time Director6.17yrs₹26.50m0.15%
₹ 255.1m
Shailendra Agrawal
Executive & Non-Independent Director2yrs₹32.30mno data
Sunil Munjal
Non-Executive & Independent Director1.83yrs₹1.15m0.020%
₹ 34.6m
Tanya Dubash
Non-Executive & Independent Director1.17yrs₹550.00kno data
Harish Salve
Additional Independent Director0.67yrno datano data
Hardeep Singh
Non-Executive & Non-Independent Director9.33yrs₹1.75m0.00038%
₹ 660.3k
Vibha Rishi
Non-Executive & Independent Director6.67yrs₹1.65mno data
Dai Watanabe
Additional Non-Executive Director0.67yrno datano data
Yuji Tomiyama
Additional Non-Executive Director0.67yrno datano data
Puranam Hayagreeva Kumar
Non-Executive & Independent Director6.67yrs₹1.57mno data
Sutanu Behuria
Non-Executive & Independent Director6.17yrs₹1.75mno data

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: ESCORTS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ESCORTS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Top Shareholders

Company Information

Escorts Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Escorts Limited
  • Ticker: ESCORTS
  • Exchange: NSEI
  • Founded: 1944
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: ₹173.765b
  • Shares outstanding: 131.76m
  • Website: https://www.escortsgroup.com

Number of Employees


Location

  • Escorts Limited
  • 15/5, Mathura Road
  • Faridabad
  • Haryana
  • 121003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500495BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
ESCORTSNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

Biography

Escorts Limited manufactures and sells agri machinery, construction equipment, and railway equipment in India and internationally. The company offers agricultural tractors under the Farmtrac, Powertrac, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 12:18
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.