Rakesh Jhunjhunwala Owns Escorts; Should You Also Buy It?

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Rakesh Jhunjhunwala Owns Escorts; Should You Also Buy It?
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Escorts Ltd (NS: ESCO ), a conglomerate that operates in the sectors of farm machinery, construction machinery and railway equipment, announced its results for the third quarter of FY21, ended December 2020. It posted an increase of 83.4% in its net profit toRs 280.7 crores compared to Rs 153.1 crore in the corresponding quarter last fiscal year.

The company’s revenues across businesses improved to Rs 2,017.4 crore in the December 2020 quarter compared to Rs 1,633.4 crore in the December 2019 quarter.“Agriculture demand for tractors and farm mechanisation is witnessing a continuous growth. We are hopeful of a sustained momentum as we see strengthening in farm and rural economies,” said CMD Nikhil Nanda.

Tractor sales increased by 25.7%to 31,562 units from 25,109 units in December 2019. Construction equipment sales increased by 20.1%to 1,254 machines from 1,044 in December 2019.

The stock is currently trading at Rs 1,401 and analysts are bullish on the stock. Brokerage firms have given targets ranging from Rs 1,500 (ICICI Securities) to Rs 1,700 (Kotak Institutional Securities).

It also helps that ace investor Rakesh Jhunjunwalaowns 4.75 of Escorts (NS: ESCO ) as of December 31, 2020. However, one point to note is that ‘The Big Bull’ has been reducing his share in Escorts even as the stock has given returns of 207% from its lows in March 2020. Jhunjhunwala owned 7.42% of the company at the end of March 2020. He reduced it to 5.64% at the end of September 2020.

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  • Ravi Kiran @Ravi Kiran
    Haha if he really is a big bull why did he sell /reduced holding to 5.56%
    Like 2
  • prathm tatkare @prathm tatkare
    follow them with trend of market n keep trailing stoploss u vl b in profit
    Like 0
  • Govindarajan Radhakrishnan @Govindarajan Radhakrishnan
    Rakesh Ji also having DHFL!!!
    Like 6
  • Balagopal Kavil @Balagopal Kavil
    M&M would be a better option
    Like 4
  • Pawan kumar @Pawan kumar
    Due to rakesh Jhunjhunu wala and one more youtuber I lost in 3 stock during period of 2017-2018.But after that my own research I recovered all loss.even I am in very good profit now only in equity.So Don't belive on any celebrity,tv or youtuber. Do your own research otherwise Don't invest in share mkt.
    Like 11
    • Archana Deo @Archana Deo
      you are not first and you are not the last
      Like 2
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  • Pawan kumar @Pawan kumar
    Due to rakesh Jhunjhunu wala and one more youtuber I lost in 3 stock during period of 2017-2018.But after that my own research I recovered all loss.even I am in very good profit now only in equity.So Don't belive on any celebrity,tv or youtuber. Do your own research otherwise Don't invest in share mkt.
    Like 7
    • Riyas TN @Riyas TN
      Exactly
      Like 1
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  • Bodha Koteswara rao @Bodha Koteswara rao
    New kind of trap, please maintain your own research
    Like 2
  • pravin patil @pravin patil
    this seems to be like CNBC tv anchor, buy a stock let people know that jhunjhunwala has bought it, dump shares when people start buying. Fearing SEBI atleast they give a disclaimer during interviews that "I own x share, but it's Not a buy recommendation".
    Like 4
  • pravin patil @pravin patil
    this seems to be like CNBC tv anchor, buy a stock let people know that jhunjhunwala has bought it, dump shares when people start buying. Fearing SEBI atleast they give a disclaimer during interviews that "I own x share, but it's Not a buy recommendation".
    Like 5
  • ankit Srivastav @ankit Srivastav
    what Mr. Jhunjhunwala buy...... I'll never buy. because Mr. Jhunjhunwala just made a loude only .... and after he'll sell these share to retail customers.
    Like 6
  • Rakesh Prasad @Rakesh Prasad
    He must have got some information from insider. Champion in insider trading.Sebi need to audit his account.
    Like 2
    • ankit Srivastav @ankit Srivastav
      he is Bluffmaster
      Like 1
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