Rakesh Jhunjhunwala, known for his contra bets, seems to have turned bullish on Autos as he recently bought over 6 lakh shares of Escorts at around Rs.88 on 14th August when stock got locked in 20% upper circuit.
Escort delivered good set of number in the 3rd quarter of FY-14 and is trading at attractive valuation based on TTM EPS. The company's trailing 12-month (TTM) EPS was at Rs 16.23 per share including EPS of Jun, 2013 quarter. The latest book value of the company is Rs 131.94 per share. At Rs.88 the stock's price-to-earnings (P/E) ratio was 5.46 and price-to-book value at 0.67. 52 week high low for the stock is 95.40 - 48.40 respectively.
