Target of 733 for VST Tillers & Tractors: S Ranganathan

ET Now spoke to S Ranganathan, Head of Research, LKP, on his views on the market.

ET Now: You also have a buy call on VST Tillers & Tractors. This stock is currently trading around the 450 levels but you have a target of about 733. What is the time frame that you have in mind?

S Ranganathan: Well this is basically a long term call and this is not a short term call. We believe that this is perhaps the only play on the power tillers market in India which is growing well.

VST Tillers, which has a market share of more than 40%, is ideally suited to play this theme. Most of the land holdings in India are small and also, the company operates in the low HP segment. We believe that a company with a good growth in this segment with high ROI, free cash flows and debt free balance sheet is well poised to take advantage of this.