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    Buy VST Tillers Tractors, target price Rs 3079: HDFC Securities

    Synopsis

    VST Tillers Tractors Ltd. key Products/Revenue Segments include Tractors, Others, Other Operating Revenue, Job Work for the year ending 31-Mar-2021.

    Buy-Sell---ThinkStockThinkStock Photos
    Company reported net profit after tax of Rs 24.01 Crore in latest quarter.
    HDFC Securities has buy call on VST Tillers Tractors Ltd. with a target price of Rs 3079. The current market price of VST Tillers Tractors is Rs 2665.9.

    Time period given by analyst is six months when VST Tillers Tractors Ltd. price can reach defined target.

    VST Tillers Tractors Ltd., incorporated in the year 1967, is a Small Cap company (having a market cap of Rs 2311.07 Crore) operating in Auto sector.

    VST Tillers Tractors Ltd. key Products/Revenue Segments include Tractors, Others, Other Operating Revenue, Job Work for the year ending 31-Mar-2021.

    Financials
    For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 205.41 Crore, down -1.71 % from last quarter Total Income of Rs 208.99 Crore and up 32.10 % from last year same quarter Total Income of Rs 155.50 Crore. Company reported net profit after tax of Rs 24.01 Crore in latest quarter.

    Investment Rationale
    The brokerage expects revenue/EBITDA/PAT of the company to grow at CAGR of 19/23/18% over FY21 to FY23E on the back of new product launches, increasing exports and continuing import curbs which could drive higher volumes. The brokerage expects RoE/RoCE to expand by 160/250bps to 16.2/21.9% in FY23E from FY21. It believes investors can buy the stock in the band of Rs 2550-2580 and add on dips to Rs 2250-2280 band (15.5x FY23E EPS) for a base case fair value of Rs 2859 (19.5x FY23E EPS) and bull case fair value of Rs 3079 (21x FY23E EPS) over the next 2 quarters.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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