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Below are Quote on Escorts Monthly Volumes by Mr. Milan Desai, Lead Equity Analyst, Angel Broking   

Escorts Ltd monthly wholesale numbers have rebounded strongly in Jun’21, growing at 95.1% MoM. On YoY basis, the volumes grew by 15.5%. June has experienced gradual opening after situation started to normalize in the last week of May. The rural economy was impacted severely this time around but has shown strength as the economics are favourable. Domestic sales for Jun’21 stood at 11,956 units (+12.5% YoY /+94.2% MoM) while exports stood at 577 units (+153% YoY /+118% MoM). As per the management, the dealerships which were barely operational in the past month and have mostly resumed although with limited hours of operations. Moreover, the inventory levels are normal at company and with channel and the company has announced a price hike on all tractors which will be effective 1st July 2021. Apart from cost control measures, price hikes would aid in offsetting RM pressure. We maintain our positive view on Escorts Ltd and expect the demand to remain strong owing to favourable rural sentiments and resumption of construction activity in H2.

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