VST Till. Tract. (VSTTILLERS)
CyclicalFairStock Score: 26/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹4,511.6 |
| Market Cap | ₹3,903.78 Cr |
| P/E Ratio | 37.45 |
| ROCE | 12.52% |
| ROE | 12.88% |
| Dividend Yield | 0.44% |
| Profit Growth | 8.68% |
| Debt/Equity | 0 |
| Sales Growth | 1.64% |
| Promoter Holding | 55.61% |
| 52-Week Range | ₹4,032 — ₹6,374 |
| Sector | Agricultural, Commercial & Construction Vehicles |
| Book Value | ₹1,222.37 |
Strengths
- Zero debt with a clean balance sheet and high promoter holding of 55.61%
- Piotroski F-Score of 7/9 indicates decent fundamental health
- Sales growth of 43.45% and latest quarter sales of ₹314 Cr show strong cyclical demand
- ROE of 12.88% and ROCE of 12.52% are acceptable for a capital-conscious investor
Concerns
- P/E of 39.72 and P/B of 4.55 leave little margin of safety
- Profit growth of 1000% is likely a low-base cyclical recovery, not a sustainable compounding rate
- Dividend yield of only 0.35% means minimal income support while waiting for value to appear
- Latest quarter net profit margin around 10% does not justify such a rich valuation
AI Analysis
Let me look at this the way Graham taught me: start with the balance sheet. VST Tillers is debt-free, with a book value of ₹1,139.52 and promoters holding 55.61%. That is a conservatively run business, and a Piotroski F-Score of 7/9 suggests the fundamentals are improving. But the price is ₹5,181.60, which means I am being asked to pay 4.55 times book and 39.72 times earnings. That is not a bargain price. The latest quarter shows net profit of ₹31 Cr on sales of ₹314 Cr—about a 10% margin, decent but not extraordinary. ROE of 12.88% and ROCE of 12.52% are respectable, but they do not scream a wonderful franchise. The 43.45% sales growth and 1000% profit growth appear impressive, but in tractors, this is a cyclical upturn, not durable compounding. A PEG of 0.08 only looks attractive if that triple-digit growth is permanent—it never is. The dividend yield is just 0.35%, so I am not being paid to wait. The 52-week range of ₹4,275 to ₹6,374 tells me this industry's earnings swing with rural sentiment, monsoons, and farm economics. There is no debt, which I admire, but valuation still lacks a margin of safety. For a value investor, a well-managed cyclical bought at 39 times earnings is a trap. I would need a much lower price or several years of proven earnings stability before putting capital to work here. For now, it remains on my watchlist, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer