VST Tillers – December Sales - Best amongst peers

By Research Desk
about 3 years ago

VST Tillers Tractors is the largest manufacturer of Power Tiller in India. Power Tiller or Heavy Tiller is an innovative machine used for cultivation, tillage, showing and weeding that contains a self-set of blades, set up with a powerful engine. Power Tiller is seen having bright future over Tractor, as an Agri Tool.

VST Tiller posted sales of 2,290 units of Tillers for December, 20, showing a 62% YoY and 7% MoM growth, the only company having posted growth on both time periods. Escorts posted YoY volume growth of 88% and MoM de growth of 24%. M&M posted YoY volume growth of 25% and MoM de growth of 31%. This is inspite of drought like situation seen in Tamil Nadu and Karnataka, while financial position of farmers are seen vulnerable in South, over North India based farmers.

VST had posted an  EPS of Rs. 54 for H1FY21, against Rs. 35 by Escorts in H1FY21. Still, Media will only be talking of growth of Escorts and not of VST Tiller. Reason is obvious and simple. In Escorts Promoter stake is at 12% (excluding stake of 25% held by Escorts Beneifits And Welfare Trust) but HNI & Inst Investors are holding 46% and retail float is low at less than 11%. But in VST Tillers, low profile promoter is holding 55% and retail is holding 22% with Inst Investors at 20%.

Hence, Media is always seen supporting Big Fish. Might is Right.

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