Rakesh Jhunjhunwala Offloads Stake In Escorts, Stock Price Slips: Report

Jhunjhunwala held 75 lakh equity shares, (5.68%), in the firm as of December 31, 2022. His name is now missing from the list of individual shareholders, who own 1% or more, according to sources

Rakesh Jhunjhunwala. Image: Getty

New Delhi: Share price of tractor maker, Escorts, was down over 3 per cent in the afternoon trade on Tuesday (April 12), a day after ace investor Rakesh Jhunjhunwala sold his stake in the tractor manufacturer, according to news report.

According to sources, Jhunjhunwala held 75 lakh equity shares, or 5.68 per cent stake, in the company as of December 31, 2022. His name is now missing from the list of individual shareholders, who own 1 per cent or more, Escorts’s shareholding pattern for Q4FY22 shows.

This means the Big Bull, who has held the stock since December 2015, booked profit during the January-March period.

The stock has been under pressure with the price falling more than 17 percent in the last five days. At 13.08 pm, the scrip was trading at Rs 1,544.05, down Rs 56.60, or 3.54 per cent on NSE. It touched an intraday high of Rs 1,607.45 and an intraday low of Rs 1,543.

Escorts' quarterly net profit came in at Rs 194.19 crore in December 2021, down 32.27 per cent from Rs. 286.71 crore in December 2020.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) was reported at Rs 305.23 crore in December 2021, down 25.84 per cent from Rs. 411.59 crore in December 2020. Its EPS decreased to Rs 19.74 in December 2021 from Rs 29.21 in December 2020.

At 2.45 pm, Escorts' shares have slided further and were trading at Rs 1,544, down 3.51 per cent. 

Meanwhile, Tata Consultancy Services (TCS) shares eased 1 per cent in opening deals, but recouped losses quickly to trade half a per cent higher later. The company, on Monday, reported a 7 per cent rise in consolidated net profit to Rs 9,926 crore and consolidated revenue of Rs 50,591 crore in the quarter under review. It also reported its highest-ever order book and crossed the revenue milestone of Rs 50,000 crore in a quarter.