Why Escorts' stock may continue to ride high

Preference for mid-cap stocks and diverse operations work in company's favour

Mid-caps have been in favour for a long time, and many of them have done well for reasons well justified. With mid-caps no longer cheap, it is imperative that investors look at solid reasons to invest in them at current levels. One case that stands out, looking at its past performance and the road ahead, is Escorts. The stock, which has delivered 62 per cent year-to-date gains in 2017 (216 per cent in the past one year), can see more upsides. 

Escorts gets its sales from tractors and farm equipment (80 per cent of its revenue), and commands a 10