Company Update - VST Tillers Tractors - ICICI Direct

VST Tillers & Tractors (VST) reported a robust performance in Q3FY21. Net sales for the quarter were at Rs. 203 crore, up 65% YoY. Power tiller sales volume in Q3FY21 was at 6,734 units, up 80% YoY while tractor sales volume was at 2,436 units, up 36% YoY. EBITDA in Q3FY21 came in at Rs. 30 crore with EBITDA margins at 14.7% and ensuing PAT at Rs. 31 crore. Higher PAT in Q3FY21 was also supported by higher than anticipated other income.

Valuation & Outlook

We are enthused by the underlying positive demand factors at VST and its ambitious vision to be a Rs. 3,000 crore global brand by 2025 in diversified farm mechanisation products & solutions. We retain our BUY rating on the stock amid healthy B/S, CFO generation and resurgent return ratios matrix. We value VST at Rs. 2,275 i.e. 18x P/E on FY23E (previous TP: Rs. 1,980).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_VSTTillers_CoUpdate_Mar21.pdf

Shares of V.S.T.TILLERS TRACTORS LTD. was last trading in BSE at Rs.1835.45 as compared to the previous close of Rs. 1782.45. The total number of shares traded during the day was 681 in over 180 trades.

The stock hit an intraday high of Rs. 1871.05 and intraday low of 1811.75. The net turnover during the day was Rs. 1260088.

Source : Equity Bulls

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