Escorts accelerates as promoter revokes pledged shares gain more than 4%

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Escorts accelerates as promoter revokes pledged shares: Escorts advanced 4.19% to Rs 125.55 at 12:52 IST on BSE, after the company said one of the promoter group companies revoked a small portion of shares which it had pledged earlier

The company made this announcement during trading hours today, 24 December 2009. Meanwhile, the BSE Sensex was up 19.18 points, or 0.11%, to 17,250.29. On BSE, 11.11 lakh shares were traded in the counter as against an average daily volume of 11.34 lakh shares in the past one quarter.

The stock hit a high of Rs 126.50 and a low of Rs 121 so far during the day. The stock had hit a 52-week high of Rs 134 on 21 October 2009 and a 52-week low of Rs 31.75 on 12 March 2009. The mid-cap stock had outperformed the market over the past one month till 23 December 2009, rising 9.10% as compared to the Sensex's 0.30% rise. It had also outperformed the market in the past one quarter, gaining 29.01% as compared to the Sensex's return of 3.06%.

The company's equity capital is Rs 94.32 crore. Face value per share is Rs 10. The current price of Rs 125.55 discounts the company's Q3 June 2009 annualized EPS of Rs 9.80, by a PE multiple of 12.81. The company manufactures and exports tractors & tractor parts, diesel engines, gears, shafts, gearboxes, engine blocks, crankshafts, cylinder heads, connecting rods and spindles.

Escorts Finance Investments & Leasing, a promoter group company, has revoked 95,000 shares representing 0.10% of the equity capital of the company. Earlier Escorts Finance Investments & Leasing had pledged 39.42 lakh shares representing 4.18% stake in the company.

Escorts Finance Investments & Leasing holds 7.84% of the equity capital of the company. The total promoters shareholding in the company is 32% (as on 30 September 2009). Escorts' net profit jumped 138.7% to Rs 22.22 crore on 10.4% rise in net sales to Rs 582 crore in Q3 June 2009 over Q3 June 2008. The company will declare its Q4 results on 27 December 2009.

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