VST Tillers Tractors Ltd. share price target

ICICI Securities Ltd | Retail Equity Research VST Tillers & Tractors (VST) reported a mixed performance in Q4FY17 amid a strong rebound in power tillers segment in March 2017 and robust performance in the tractor segment Net sales in Q4FY17 came in at | 197.2 crore, up 11.2% YoY In Q4FY17, power tiller sales volume were at 7766 units (down 2% YoY) while tractor sales volume were at 2567 units (up 33% YoY) EBITDA in Q4FY17 was at | 28.8 crore, with corresponding EBITDA...

V.S.T. Tillers Tractors (VSTT) reported a ~12% YoY growth in revenues during 4QFY17. The company sold 7,766 tillers (down 2% YoY basis; up 92% on a QoQ basis), while tractor volumes came in at 2,567 units (up ~33% YoY). The tiller business contributed to a little over INR 1 bn while tractor sales stood at INR 750 mn. At the operating level, EBITDA numbers came in flat as margins contracted to 14.6% as compared to 16.3% in same quarter last year. Performance in the quarter is in line with the guidance that was provided by the management earlier during the year gone by there were higher investments made towards...

Exemplary Performance Reported in March 2017, to End FY17 on a High: VST Tillers Tractors Ltd has reported on Apr 3, 2017 indicating exemplary sales volumes for March, 2017. During March, 2017 under the power tiller segment, the company was able to record sales of 4625 units Vs 1527 units in February, 2017 marking a growth of 202.9% MoM. Under the tractors segment, the company recorded a stellar growth by making sales of 1398 units in March, 2017 Vs 651 units in February, 2017 marking a growth of 114.7% MoM.

New Product Launches Lined up for the next Fiscal; FutureOutlook Promising: Revenue from operations for VST Tillers Tractors Ltd in Q3FY17 have declined toRs. 1446 Mn Vs Rs. 1518 Mn in Q3FY16 marking a drop of 4.7% YoY which made Q3FY17 the first quarter to record negative growth in past 7 quarters. The mundane performance in Q3FY17 came as a result of demonetization, drought in keyclientele states like Karnataka, Tamil Nadu and Kerala and delay in implementation of subsidy schemes in Andhra Pradesh, Orissa, Karnataka and Assam.

ICICI Securities Ltd | Retail Equity Research VST Tillers Tractors (VST) reported a muted Q3FY17 performance. Net sales in Q3FY17 came in at | 144.6 crore, down 4.7% YoY In Q3FY17, power tiller sales volumes were at 4042 units (down 36% YoY) while tractor sales volume were at 2507 units (up 30% YoY) EBITDA in Q3FY17 was at | 18.7 crore, with corresponding EBITDA margins at 12.9%. PAT during the quarter was at | 13.4 crore A steep drop in power tiller sales during the quarter was on account...

Fresh Market Exploration to Pave the Way Ahead: Sound State of Affairs - Revenue from operations for VST Tillers Tractors Ltd forFY16 stood at Rs. 6467 Mn marking a growth of 17.2% YoY. With gain in market share by the company for both power tillers and tractors during H1FY17, we expectrevenue from operations to grow at a CAGR of 11.5% for the period FY16 to FY19E. External debt free balance sheet of the company is complemented by healthy profitmargins. EBITDA was recorded at Rs. 1129 Mn for FY16 marking an impressive EBITDA margin of 17.5%.

ICICI Securities Ltd | Retail Equity Research VST Tillers Tractors (VST) reported a healthy performance in Q2FY17. Net sales in Q2FY17 came in at | 174.7 crore, up 15.7% YoY In Q2FY17, power tiller sales volumes came in at 6407 units (flat YoY) while tractor sales volumes grew a robust 43% YoY to 2507 units EBITDA in Q2FY17 was at | 26.1 crore, with corresponding EBITDA margins at 14.9%. Margins came in lower on account of an increase in A&P; expense over a significant brand building exercise...

We expect VST to grow its profits at 17% CAGR over FY16-18E. The company trades at 15.5x FY18E EPS. We maintain our TP of INR 2,250 (19x FY18E EPS) providing an upside of 23%.

ICICI Securities Ltd | Retail Equity Research VST Tillers Tractors (VST) reported a muted Q1FY17performance. Net sales in Q1FY17 came in at | 178.1 crore, up 6.9% YoY In Q1FY17, power tiller sales volumes grew 8.1% YoY to 7300 units while tractor sales volumes de-grew 4.8% YoY to 2158 units EBITDA in Q1FY17 was at | 24.6 crore, with corresponding EBITDA margins at 13.8%. Margins came in substantially lower YoY primarily on account of higher employee costs (one time gratuity charge to...

We recommend to BUY VST Tillers Tractors for a target of INR 2,250 - 19.0x on FY18E EPS (+20% Upside) Market leader in power tillers: Fragmented land holdings of...