Escorts may outperform with record tractor sales in FY18, product launches

They expect the company's tractor volumes to rise at an annual rate of 10% over the FY17-20 period

With industry tractor sales expected to hit a record high in FY18, Escorts, which earns 80 per cent of its revenues from its tractor business and holds 11 per cent market share, is expected to be among key beneficiaries of this improved demand. The industry tractor sales estimated at 0.65 million in the current fiscal — well past the previous record high of 0.634 million achieved in FY14.

It is not a surprise that brokerages continue to be bullish on the prospects of the Escorts stock, which has gained about 21 per cent in one month and has more than