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Check Before You Invest : V.S.T. Tillers Tractors Ltd

BSE: 531266 NSE: VSTTILLERS ISIN: INE764D01017
  |   Sector:  Automobiles   |   Industry:  Automobiles-Tractors

Snapshot

Q.1 Which industry/sub-sector does V.S.T. Tillers Tractors Ltd belong to?
V.S.T. Tillers Tractors Ltd belongs to the Automobiles sector, operating specifically within the Automobiles-Tractors segment.
Q.2 Is V.S.T. Tillers Tractors Ltd a good quality company?
V.S.T. Tillers Tractors Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is V.S.T. Tillers Tractors Ltd undervalued or overvalued?
V.S.T. Tillers Tractors Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 35.56 26.53
Price to Book 4.1 3.27
Price to Sales 3.68 2.98
EV to EBITDA 22.94 16.17
Q.4 Is V.S.T. Tillers Tractors Ltd a good buy now?
V.S.T. Tillers Tractors Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd revenue growth is 2.7% for FY-2025, which is below its 5-year CAGR of 12.84%, indicating slower growth.

Q.2 Gross Profit margin of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Gross profit margin which is the profit after deduction of direct costs, is 14% for FY-2025, which is below its 5-year median of 17%, indicating decreasing margins.

Q.3 Operating Profit Margin of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.2% for FY-2025, which is below its 5-year median of 12.73% indicating decreasing margins.

Q.4 Net Profit Margin of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Net Profit Margin is 9.5% for FY-2025, is below its 5-year median of 11.63%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 14 17
Operating Profit Margin (%) 11.2 12.73
Net Profit Margin (%) 9.5 11.63

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Return on Asset is 7.76%, which is below its 5-year historical median of 10.73%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Return on capital employed is 12.88% for FY-2025, which is below its 5-year historical median of 18.1%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Return on equity is 9.82% for FY-2025, which is below its 5-year historical median of 13.9%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Cash conversion cycle is 58 days, above its 5-year historical median of 45 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.86 0.97
ROE (%) 9.82 13.9
ROCE (%) 12.88 18.1
Cash Conversion Cycle 58 days 45 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of V.S.T. Tillers Tractors Ltd?
V.S.T. Tillers Tractors Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of V.S.T. Tillers Tractors Ltd?

Q.1 Promoter shareholding and pledge status of V.S.T. Tillers Tractors Ltd?
Promoters hold 55.61% of the V.S.T. Tillers Tractors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does V.S.T. Tillers Tractors Ltd performance compare with that of its Peers?

Q.1 Revenue growth of V.S.T. Tillers Tractors Ltd vs industry peers?
V.S.T. Tillers Tractors Ltd revenue CAGR is 12.84%, compared to the industry median CAGR of 11.23%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 2.7 11.2
Gross Profit Growth (%) -19.7 25.6
Operating Profit Growth (%) -11.2 29.1
Net Profit Growth (%) -23 40.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.86 0.83
ROE (%) 9.82 9.19
ROCE (%) 12.88 12.69
Cash Conversion Cycle (days) 57.98 136

Valuation & price assessment

Q.1 Stock return of V.S.T. Tillers Tractors Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 10.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
10.9% 23.3% 28.4% 50.8%
Q.2 Valuation ratios of V.S.T. Tillers Tractors Ltd vs historical?
The current P/E ratio of 35.56 is higher than its historical median of 26.53, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 35.56 26.53 31.41
Price to Book 4.1 3.27 3.27
Price to Sales 3.68 2.98 2.97
EV to EBITDA 22.94 16.17 18.99

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