VST Tillers rallies 18% in 5 days on strong power tillers sales in August

Shares of VST Tillers Tractors hit a refreshing 52-7 days superior of Rs one,925, up 6 for every cent on the BSE on Monday, surging eighteen for every cent in the previous five days after the organization documented a solid power tillers product sales in the month of August.

The organization marketed 2,638 power tillers in August 2020 as in opposition to one,437 in August 2019, registering 83.57 for every cent year-on-year (YoY) growth. It experienced marketed 897 tractors for the duration of very last month, as in contrast to 813 in the corresponding month of the preceding year.

The company’s overall product sales (power tillers and tractors) ended up up 57 for every cent YoY at three,535 models in August 2020, as in opposition to 813 models in the same month very last year.

As a result considerably in the financial year 2020-21 (April 2020 to August 2020), the organization has marketed ten,864 power tillers as in opposition to 9,341 for the duration of the same period preceding fiscal. The organization is a person of the largest producers of power tillers in India with a market place share of around 46 for every cent in FY2019-twenty.

“VST expects tractor product sales volume to grow around ten-15 for every cent in FY21E with power tiller product sales volume growth steering at 15-twenty for every cent in FY21E. Significantly, far more and far more farmers are purchasing power tiller on dollars basis and not withholding order for want of condition subsidies which is a massive beneficial shock,” analysts at ICICI Securities said in Q1 outcomes update.

VST is in final levels of negotiation for tie-ups in the contract manufacturing area for power tillers provided the import restrictions (reduce price tag factors difference bundle altogether) VST market place share in power tiller segment is up 400 bps to 51 for every cent although the same in compact tractor segment, it said.

The brokerage company reiterated its bullish stance on VST provided the sweet spot of robust demand from customers potential clients, import restrictions in power tiller segment and steady enhancement in margin profile. VST also possesses a balanced balance sheet (dollars wealthy) with history of steady beneficial CFO era.

At ten:27 am, the stock was buying and selling 5 for every cent bigger at Rs one,900 on the BSE, as in opposition to .twenty for every cent drop in the S&P BSE Sensex. A mixed around 33,000 fairness shares experienced transformed arms on the counter on the NSE and BSE till the time of writing of this report.