ICICI Direct's research report on VST Tillers Tractors
VST Tillers & Tractors (VST) reported a healthy Q1FY21 performance. Net sales in Q1FY21 were at Rs 146.2 crore, up 5% YoY. Power tiller sales volume in Q1FY21 was at 5,186 units, up 3% YoY while tractor sales volume was at 1,766 units, up 5% YoY. EBITDA in Q1FY21 came in at Rs 16.4 crore with EBITDA margins at 11.2%. Ensuing PAT in Q1FY21 was at Rs 17.1 crore, up 48% YoY, primarily tracking better margin profile and higher other income.
Outlook
VST also possesses a healthy balance sheet (cash rich) with history of consistent positive CFO generation. With volume uptick (13% CAGR over FY20P-22E) and recovery of margin profile, earnings are expected to witness smart recovery at VST. Consequently, we retain our BUY rating on VST and value it at Rs 1,980 i.e. 22x FY22E EPS of Rs 90.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
