Equity markets are trading at all-time highs and Escorts certainly is no exception. Escorts is travelling in uncharted territory and is making new highs as investors continue to be rewarded for their sound investment pick.
Escorts, if one looks carefully, is a perfect blend of businesses that promise to tap the India growth story meaningfully. Escorts has three primary business divisions:
a. Agri-Machinery Business
b. ECE (Escorts Construction Equipment)
c. Railways Equipment Division (RED)
With these three business divisions, Escorts can be seen operational in agriculture sector, which also is the largest employer in India, and the infrastructure sector, which is a focus sector for the current government and promises to grow rapidly in the coming years.
Escorts is engaged in the core sectors of the economy and its businesses make a unique contribution to the growth and development of the nation.
KEY MACRO TRIGGERS
India's infrastructure and construction industry is at an inflection point currently. Owing to the government's renewed focus on developing Smart Cities and other infrastructure project that are expected to stimulate growth, the construction and construction equipment companies can expect to see decent amount of growth in the years to come.
The renewed thrust on infrastructure can be expected to be a major driver of economic transformation and this transformation will help restore the growth momentum of Escorts construction equipment business that comprises a range of efficiency-enhancing equipments.
The railway equipment division is yet another growth engine that can contribute incrementally to the company's fortune in coming years.
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