Farming & Rural Player – 25% upside

With the onset of the pandemic and the various demographic changes that India is witnessing in the rural landscape one of the most profound and a non discretionary activity is Farming. Farming machinery is an important aspect of the crop yield and that is where this company is a differentiated in its space. This company is now the largest manufacturer of Power Tillers in India.

Stock Name : VST Tillers , current price : 1930 , target 2200+ with a time frame of 3 to 6 months.

**Turnaround in operation activity in last 3 years peaking out to 4 years high
**Aggressive debt repayment and efficient Working capital planning
**Sales growth on the higher side of the 4 years average
**TTM EPS is 400% up against march 2020 EPS and 200% against march 2019 , indicating pick up in demand
**Expected ROCE improvement on the increased demand in the rural sector
**Aggressive buying by FII and DII holding over 20% of the company .
**Company at reasonable valuation of 2.5x times its book

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