Shares of Escorts Ltd. snapped a 4-day winning streak

Escorts Ltd, a mid-sized tractor maker, snapped a 4-day winning streak on Tuesday after it announced disappointing volume sales for the month of August.

Escorts, which struck a fresh high on Monday, said domestic tractor sales dropped 25 percent to 2,355 units in August from 3,147 in the same month an year ago. Exports plunged 90 percent to 47 units and total tractor sales were down 33 percent to 2,402 units from 3,624 units in the year ago month.

Both Escorts and Mahindra & Mahindra have been hit by a downturn in rural incomes and weak monsoon rains this time.

Escorts lost 11 rupees, or 6.2 percent, to 163.70 rupees on the National Stock Exchange where 2.02 lakh shares were traded versus the 5-day average of 3.40 lakh shares.

The company has seen its market capitalisation jump 37 percent to 2,054 crore rupees in the past one year. The stock is trading 1.14 times its book value of 147 rupees.

Image credit: Indiatimes