Rakesh Jhunjhunwala who is often referred to as the ‘Warren Buffet of India’ has once again added Escorts Kubota, formerly known as Escorts, to his portfolio during the first quarter of FY23 (April to June 2022 period). was known as. In the March quarter, Jhunjhunwala’s stake in Escorts fell below 1% and he was not named in the company’s public stake. However, it seems that the escorts in Kubota are Jhunjhunwala optimistic. As of now, this is the only stock that Jhunjhunwala has bought during Q1FY23.
As per the latest shareholding pattern, Rakesh Jhunjhunwala Purchased 18,30,388 equity shares or 1.39% in the company during Q1FY23.
In the March 2022 quarter, Jhunjhunwala’s name did not figure in Escorts’ shareholding list, which means his holding is less than 1% or around 1%. As of December 2021, Jhunjhunwala held 7.5 million equity shares or 5.68% in Escorts.
Escorts Kubota is new, according to Trendline data Investment The value of his shareholding in Jhunjhunwala’s portfolio is around 317.2 crores till date.
Escorts shares remained low on BSE 1732 down every Wednesday 24.25 or 1.38%. Its market cap is approx. 22,852.11 crore.
Escorts shares took a dive in Q1FY23, however, gained momentum in July. The shares have risen more than 20 per cent so far this month. In one year, the profit is around 48%.
In the period April-June 2022, Escorts Kubota sold 26,797 tractors, up 3.3% from 25,935 tractors in the same quarter last year.
Announcing the sales data on July 1, Escorts said, “With the onset of monsoon and the prospect of kharif crop production, rural liquidity and farmers’ sentiments are expected to improve gradually.”
In the Auto Monthly Sales Report, Ashwin Patil, an analyst at LKP Securities, said, “The tractor segment has witnessed strong growth in numbers in June on a sequential basis after a weak FY22. However, we have seen a year-on-year growth in tractor sales. The year has seen a decline. The ban on exports of various food grains like wheat, sugar etc. in May and June was very much the basis.”
As for Escorts, Patil said, “Escorts Kubota witnessed a similar trend as its sales grew by 20.8%, while declining by 20% year-on-year. Going forward, as the monsoon revives, we are looking forward to the coming year.” Let’s expect a good sequential growth for tractors over the months.”
In FY22, Escorts made a net profit of 765.6 crore down from 874.1 crore in the previous year. Its total revenue is approx. 7,152.7 crore, up 3.2% year-on-year. Tractor sales stood at 94,228 units, down 11.7%.
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