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You are here : IndiaNotes >> Research & Analysis >> Companies >> VST Tillers Tractors Ltd. >> Research

VST Tillers Tractors Q1FY18: Firstcall overweight for medium to long term investment

Firstcall India Equity | 12 Sep, 2017  | Follow Author | Add to my Favourites 
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  • VST Tillers Tractors Limited is engaged in the manufacturing of power tiller and tractor.

  • The Revenues of the company has increased to Rs.1812.00 million for Q1 FY18 as compared to Rs. 1729.20 million in Q1 FY17, up by 4.79%

  • During Q1 FY17, EBITDA of the company grew 9.96 % at Rs. 392.90 million against Rs.357.30 million in Q1FY17.

  • Profit before tax stood at (PBT) at Rs.359.50 million in Q1 FY18 as compared to 326.10 million in Q1 FY17.

  • The PAT of the company has increased to Rs. 281.80 million in Q1 FY18 as compared to Rs.239.70 million in Q1 FY17.

  • The EPS of the company stood at Rs.32.62 in Q1 FY18 against Rs.27.74 in Q1 FY17.

  • The Total income of the company has increased to Rs.1959.60 million in Q1FY18 as compared to Rs.1815.10 million in corresponding quarter of previous year.

  • The Margins of EBIDTA and PAT increased to 21.68% and 15.50% in Q1FY18 as compared to 20.66% and 13.86% respectively.

  • Sales quantity of Power Tillers and tractors is 2405 and 760 as on July 2017 as compared to 3045 and 684 in the corresponding quarter of previous year Sales quantity of Power Tillers and tractors is 1628 and 1028 as on August 2017 as compared to 1930 and 810 in the corresponding quarter of previous year.

  • Net sales and PAT of the company are expected to grow at a CAGR of 10% and 7% over 2016 to 2019E, respectively.


OUTLOOK AND CONCLUSION


At the current market price of Rs. 2079.15, the stock P/E ratio is at 21.76 x FY18E and 19.70 x F Y19E respectively.


Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 95.57and Rs. 105.56 respectively.


Net sales and PAT of the company are expected to grow at a CAGR of 10% and 7% over 2016 to 2019E, respectively.


On the basis of EV/EBITDA, the stock trades at 11.82 x for F Y18E and 10.37 x for F Y19E.


Price to Book Value of the stock is expected to be at 3.19 x and 2.84 for FY18E and FY19E respectively.


The Company has been successfully running more than 75 Custom Hiring & Service Centers under the scheme launched by the Government of Kamataka.


Small farmers and marginal farmers are taking the farm equipment on lease through these Custom Hiring & Service Centers and the company has planned to invest around Rs.1500 million which includes new product development (Rs.800 million), plant infrastructure and machinery over the next 4 years.


Hence, we say that,we are Overweight in this particular scrip for Medium to Long term investment.


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


For more information please write in to [email protected]

 

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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