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LowfarmmechanizationinIndia Theres no denying that availability of adequate farm power is very crucial fortimely farm operations for increasing production and productivity and the power productivity relationship showsthatthose States havinghigher farm power availability/hahave higher productivity. SmalllandholdingsinIndiaaptforthegrowthofTillersan dsmalltractorsOut of about 105 million farmers who own land in India, about 80 million are small and marginal farmers, who are witnessing labor scarcity and rising wages. For most of these farmers, the medium 31 -40 HP tractors are too expensive and too big for their farms,while Low HP tractors and tillers are affordable, making them a viable option. Capacityexpansionwithinternalaccruals For the last many years, VST has been consistently generating positivec a s h flows which has enabled it to ile on sufficient cash for carr in out a R s 1 0 0 c r o r e c a a c i t e x a n s i o n . T h e same will more than double the current combined (tillers + tractors) production capacity of the company. It is expectedto come on stream in Sep12. Consistentlyearninghighreturnonshareholdersfunds Over the longer term, the company can grow only as fastas it generates returns on the funds employed. VST has consistently been earning 25%+ return on equity for the last5 years. Considering the capacity expansion that the company has embarked on, we expect far better utilization of free cash and liquid investments,thus expecting the companyto further improve upon currentcapital utilization. Veryattractivevaluations VST Tillers is a debt free company with a very strong track record. At current levels, thestock is available at 7-7.5 times FY 12 (E) earnings and 1.75 times the FY 12 (E) book value. A 10-15% correctionfrom current levels will take it towards the lowest end of valuation parameters the stock has witnessed in the pastand we have thus suggesteda 2 phase buying strategy, considering the overall negativebias in the market

Company profile

VST Tillers Tractors Ltd, from the illustrious VST group, was incorporated in the year 1967 in Bangalore, India in technical collaboration and joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for themanufactureof Power Tillers and Diesel Engines. Largest Tiller manufacturer in India ,CompanyLtd, Japan for the manufactureof 18.5 HP, 4 wheel drive Tractor.The manufacturing plant of the company is located in Whitefield Industrial area near Bangalore. It has 75,000 Sq.m e t e r s o f l a n d a n d a b u i l t u p a r e a o f 1 5 , 0 0 0 S q . m e t e r s ( a p p r o x ) . T h e c o m p a n y i s c o m i n g u p w i t h a s e c o n d manufacturingplant in Hosur. ThemainproductsoftheCompanyarePowerTillersandTractors : In the space of Power Tillers, VSTcommandsa leadership position with a market share of 45%. In the segment of tractors, VST was amongst the first few companies to have introduced a <20 HP tractor, whileother companies are now following in the footsteps. www.katalystwealth.com

Please refer the following links . They are useful. I found the information too exhaustive . Hence I could not send everything.

http://www.scribd.com/doc/81267469/VST-Tillers-Tractors-Ltd-NSE-CodeVSTTILLERS-Katalyst-Wealth-Alpha-Recommendation-for-Dec-11 http://www.scribd.com/doc/63327273/A-COMPARATIVE-SYTUDY-BETWEENKAMCO-AND-VST-TILLERS http://www.scribd.com/doc/36793640/Project-on-VST-Tillers http://www.scribd.com/doc/37981522/VST-Tiller-Report