VST Tillers rallies 7%, hits 52-week high on strong sales in August
Shares of VST Tillers & Tractors rallied 7 per cent to a fresh 52-week high of Rs 1,767 on the BSE on Wednesday after reporting a strong 57 per cent year-on-year (YoY) growth in total sales at 3,535 units in August 2020, on the back of robust power tiller sales.
The company has sold 2,638 power tillers in August 2020 as against 1,437 in August 2019, registering 83.57 per cent YoY growth. It has sold 897 tractors during last month, as compared to 813 in the same month of previous year.
Thus far in the financial year 2020-21 (April 2020 to August 2020), the company has sold 10,864 power tillers as against 9,341 during the period April 2019 to August 2019. The company has sold 3,513 tractors in the first five months of this financial year as against 3,217 tractors during the same period last fiscal.
The company is one of the largest manufacturers of power tillers in India with a market share of around 46 per cent in FY 2019-20.
According to the company’s management, the Indian agriculture equipment market is expected to grow at a slower pace till 2022. But, the market is anticipated to witness considerable growth on account of government initiatives which aim to double farmers’ income in the country by 2025. It has been projected to grow at a CAGR of 9.9 per cent during the period from 2019-2025.
“Meanwhile, the agricultural tractors market is projected to witness a CAGR of 4.5 per cent during 2020-2025. Government initiatives for rural development and farm mechanization, enhanced rural wages and scarcity of farm labour is expected to further contribute to the growth of tractor and power tiller volumes over the long term,” VST Tillers said in its FY2019-20 annual report.
At 10:11 am, the stock was trading 4 per cent higher at Rs 1,706 on the BSE, as compared to 0.05 per cent decline in the S&P BSE Sensex. A combined 51,446 equity shares have changed hands on the counter on the BSE and NSE.