One can buy this Rakesh Jhunjhunwala portfolio stock at current market price and keep on accumulating up to ₹1130 levels for the target of ₹1320 to ₹1445 within two months time-frame, say experts
Rakesh Jhunjhunwala portfolio went through huge overhaul recently but the 'Warren Buffett of India' continued with his conviction in regard to Escorts and some other stocks. Escorts shares were one of such Rakesh Jhunjhunwala stocks in which Rakesh Jhunjhunwala holdings remained unchanged. According to stock market experts, due to the normal monsoon prediction by the IMD, tractor demand are going to rise that will benefit Escorts company. They advised investors to buy Escorts shares for the target of ₹1445. Escorts share price at NSE had closed at ₹1199.70 on Thursday.
Speaking on the fundamentals supporting Escorts share price rally Jitesh Ranawat Head Institutional Sales at Marwadi Shares and Finance said, "Escorts is a major beneficiary of growing tractor demand. We believe the tractor industry is likely to show strong growth in the H2 FY22 led by a favourable monsoon, improvement in financing availability, robust rural economy, and stable crop prices. Also, the pick-up in construction activity in rural areas will aid tractor volumes going forward. With normalcy returning we expect Escorts to benefit in the medium to long term."
Jitesh Ranawat of Marwadi Shares and Finance went on to add that Escorts expects strong growth in exports through Europe, South East Asia and Brazil markets and said, "Tractors will continue to be the main revenue segment to drive growth, we expect the railway segment to also show some gains on the strong order book. We expect profitability to sustain on a favourable cash flow position and aggressive cost-cutting initiatives."
Unveiling investment strategy in regard to Escorts shares Sandeep Matta, Founder, TRADEIT Investment Advisor said, "One can buy Escorts shares at current market price and keep on accumulating up to ₹1130 levels for the target of ₹1320 to ₹1445 within two months time-frame. However, one must maintain the stop loss at ₹1060."
Rakesh Jhunjhunwala net worth in Escorts
As per Escorts shareholding pattern for March 2021 quarter, Rakesh Jhunjhunwwala holds 64 lakh Escorts shares, which is to the tune of around 4.75 per cent of the net company shares. The market magnet had same share holding in December 2020 quarter as well.