V.S.T. Tillers Tractors Limited

Industrials — Farm & Heavy Construction Machinery · NSE

₹4,244.00−₹23.10 (−0.54%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of V.S.T. Tillers Tractors Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

V.S.T. Tillers Tractors Limited manufactures and trades agricultural machinery in India and internationally.

IndustryFarm & Heavy Construction Machinery

SectorIndustrials

Employees825

Annual revenue₹1,235 Cr

How does it make money?

Turns over ₹1,235 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 825 employees supports ₹1.50 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.50 Cr

Who are its competitors?

The closest listed comparisons in its industry are MAHINDRA & MAHINDRA LTD, ASHOK LEYLAND LTD, TATA MOTORS LIMITED, LARSEN & TOUBRO LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE24.4%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 13.5% and earnings to grow about 20.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.5%

Est. earnings growth+20.4%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +23% while net margin moved -8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+23%

Margin effect-8%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.2% — barely ahead of inflation
✗ Profit CAGR of only 4.3%

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

41/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.8x

3Y Median

35.3x

40 monthly readings · mean 37.6x · range 24.3x–58.3x

Sector Median

27.6x

median of 4 sector peers

🟡Currently trading close to its 3y median of 35.3x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 22% above the peer median of 27.6x.

vs. its own history

Fair

35.3x median over 40 months · -4%

vs. sector peers

Expensive

27.6x median of 4 peers · +22%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.6x

PEG

7.91

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 764% over 3 years.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹105 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 22% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 7.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 7.2% CAGR
Latest reported year was 11.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹105 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹3,672 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.35x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹125.49

Profitable

Profitable on a per-share basis

ROE

9.6%

Moderate

Moderate capital efficiency

ROCE

12.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

11.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

9.5%

Modest

Slow profit growth

Dividend Yield

0.59%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹105 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.1%

Average

Average margins

Net Margin

8.6%

Average

Average bottom-line conversion

Current Ratio

5.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4323.0 / 4321.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,002 Cr	₹963 Cr	₹990 Cr	₹1,235 Cr	+7.2%
EBITDA	₹138 Cr	₹133 Cr	₹120 Cr	₹176 Cr	+8.4%
EBITDA Margin	13.8%	13.8%	12.1%	14.2%	—
PAT (Net Profit)	₹92 Cr	₹121 Cr	₹93 Cr	₹105 Cr	+4.3%
EPS	₹106.9	₹140.1	₹107.43	₹120.68	+4.1%
ROE	11.2%	13.1%	9.3%	9.6%	—
ROCE	14.3%	16.1%	11.5%	12.4%	—
Total Debt	₹2 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+0.4%
Free Cash Flow	₹12 Cr	₹41 Cr	₹56 Cr	₹105 Cr	+105.2%

🟢 Revenue has grown at 7.2% a year over 3 years.

🟢 EBITDA has grown at 8.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 14.2% over 3 years.

🟢 PAT (Net Profit) has grown at 4.3% a year over 3 years.

🟢 EPS has grown at 4.1% a year over 3 years.

🔴 ROE has fallen from 11.2% to 9.6% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 14.3% to 12.4% over 3 years (-1.9 pts).

🟡 Total Debt has been broadly flat over 3 years (0.4% a year).

🟢 Free Cash Flow has grown at 105.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,344 Cr

Total Liabilities

₹250 Cr

Cash & Equivalents

₹47 Cr

Operating Cash Flow

₹132 Cr

Capex

-₹26 Cr

Shareholding (proxy)

Institutional Holding

19.6%

Insider Holding

58.8%

Corporate Actions

Dividend Rate

₹25

Ex-Dividend Date

16 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹5,265

+24.1% vs CMP

Target Range

₹4,189 – ₹6,000

Peer Comparison

Company	P/E	ROE
MAHINDRA & MAHINDRA LTD	17.8x	19.7%
ASHOK LEYLAND LTD	25.2x	24.4%
TATA MOTORS LIMITED	37.1x	32.8%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

2 mixed4 general

V.S.T. Tillers Tractors (NSEI:VSTTILLERS) - Stock Analysis

Simply Wall Street, 15 Oct

VST Tillers Tractors Ltd. Share Price Live Today

CNBC TV18, 16 Oct

V.S.T. Tillers Tractors (BSE:531266) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Two tractor stocks: Escorts Kubota shares fall 6%; VST Tillers shares rally 5% after September sales

The Economic Times, 01 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

VST Tillers Tractors reports 10% decline in July 2026 sales

Business Standard, 03 Aug

VST Tillers Tractors reports 9.6% drop in July sales volume

scanx.trade, 01 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑