Market share gains outweigh volume growth worries for Escorts: Analysts

Prediction of near-normal rains a relief on the tractor sales front

Escorts lagged the broader markets by a huge margin–down 20 per cent—in the last financial year but the tractor company’s shares are preferred still because of market share gains and better volume growth.

India Meteorological Department’s forecast this week of near normal monsoon rains and the company’s initiatives should help Escorts tap incremental demand and gain market share.

Escorts has gained 100 basis points market share in FY19 to 11.8 per cent. With the volume base not expanding much for the sector, experts say most of the gains have come from other players like Mahindra and Mahindra. Escorts plans to