VST Tillers & Tractors – Company Analysis

VST Tillers:

• company is engaged in manufacturing farm equipment, tractors and diesel engines
• it is belong to VST group of south India.
• It has technical tie-up with Mitsubishi of Japan
• It has 50% market share in tillers used in agriculture in India.

Manufacturing facilities:

• It has 3 plants in Karnataka state of India.

POSITIVES:

• belongs to prestigious VST group
• technical support from Mitsubishi  of Japan
• market leader in tillers segment. there is not presence of big company in this segment.
• little debt
• investor friendly company
• Agriculture sector is always remain in focus in budget and Govt provide various sops

NEGATIVES:

• Raw Material costs
• poor monsoon can reduce demand