Escorts Ltd: The company is expected to introduce new products and focus on higher HP will lead to improvement in margins. Escorts is focusing mainly on exports and is targeting to increase export units from ~1000 units in FY14 to 2000 units in FY15E and 4000 units by FY16E. In the railway division, the company has got clearance which is expected to augur growth. Near term trigger highly depends on revival in tractor demand and improvement in economic environment for construction equipment. Revenue grew at 18% CAGR during FY10-FY14; while Net profit increased 18% CAGR during the same period. 83.5% of the company’s revenue derived from agri machinery followed by 10.7% from construction equipment. It is focusing on several new markets in the European region, latin America and south Africa to implement its going global strategy. Nevertheless, we are optimistic about the long term prospects of the company as improvement efforts taken by the management will yield results in the long run. Hence we recommend Buy on Escorts with a target of `192.