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Below are Views On Escorts monthly wholesale numbers for May`21 by Milan Desai, Lead Equity Analyst, Angel Broking
 

Escorts monthly wholesale numbers for May’21 declined by 8% MoM to 6,423 units, impacted by the second wave of Covid-19, especially in rural India. The management had shared earlier during the result call that ~65% of the dealerships were partially or fully shut and there was decline in walk-ins. Domestic sales for May’21 stood at 6,158 units while exports stood at 265 units. As per the release, the situation has eased in the last few days of May’21 and expect normalcy to return soon. The company had witnessed a strong pent up demand last year post gradual easing of restrictions and is maintaining inventory in the channel in anticipation of the same. Although the near-term performance is expected to be muted, we remain positive on Escorts from the medium-term perspective considering improving rural incomes and growth in exports.