Buy VST Tillers Tractors Ltd., target Rs 2250.0 : Motilal Oswal Securities

Motilal Oswal Securities has Buy call on VST Tillers Tractors Ltd. with a target price of Rs 2250.0. The current market price of VST Tillers Tractors Ltd. is 1871.8. Time period given by analyst is year, when VST Tillers Tractors Ltd. price can reach defined target. Motilal Oswal believes a good monsoon bodes well for the farm mechanisation sector with VST a key beneficiary VST is an attractive play on its debt-free status, healthy product pipeline, continuous emphasis on market-share increase, minimal capex requirements, healthy FCF, and superior return ratios, and resurgence of agriculture income on the back of above normal monsoon forecasts. Motilal Oswal expects VST to grow its profits at 17% CAGR over FY16-18E. The company trades at 15.5x FY18E EPS.