Thursday, May 30, 2013


This stock recommended @ Rs.73 which is currently trading around Rs.370

For old posting click HERE

Company reported more than 300 % increase in net profit for the latest March quarter and declared a dividend of 25 %

Saturday, May 25, 2013


This stock earlier recommended@ Rs.493 on February 11,2012.Considering company's plans to launch new products and based on its robust fourth quarter performance reiterating a BUY even @ CMP of Rs.575 /- for long term investors.

To read old posting about this company  ,click HERE


Thursday, May 23, 2013


Orient Bell recommended @ Rs.90 which later hits a high of Rs.110 and currently trading @ Rs.71. Due to higher interest rate and over all recession ,the entire property development activities going through tough times.This may impact the working result of entire companies in this sector.Those who are not interested to take higher risk and not willing to hold it for long term may book loss @ CMP Rs 71    and consider a re-entry when there is some improvement in this sector


Saturday, May 18, 2013


Ever increasing demand for food and serious shortage of man power in farming sector creating challenges as well as opportunities for various participants.Government schemes like food security bill etc.. are expected to add fuel into fire. Increasing productivity using Scientific farming techniques and mechanization of farming activities are the only solution for this serious issue.VST Tiller and Tractor is one company which will benefit from this  emerging scenario.Company is India’s largest manufacturer of Power Tillers and other farming equipments.This Bangalore based company having four manufacturing facilities to produce Power Tillers,Mini Tractors,Paddy Transplanters and Diesel Engines.VST had technical  collaboration with Mitsubishi Corporation,  Japan .Company developed a good marketing network  with more than 160 dealers across India .Its products are also exported to countries like Middle East, Russia , Turkey , Korea and Thailand.In power tiller segment company commanding a market share of 45% in India.Supported by robust demand ,company recently increased its production capacity.Company having a strong balance sheet with negligible debt .Even during tough times for agriculture sector company showing good performance by all parameters.In FY 2011-12 , VST Tiller reported a Sales of Rs.528 Cr , net profit ofRs.50 Cr and an EPS of Rs.58 /- . Even in a bad year for entire farming related business due to delayed monsoon ,For the nine month December 2012,company reported  a net profit of Rs.33 Cr.VST Tiller is an uninterrupted dividend payer for the past 8 years and declared 90% each in past two years.
                                                             I believe , since there is no alternative for food and the attitude of new generation youth towards farming – mechanization is the only solution to avoid food crisis in future.Hence , the potential  for farming equipments like Tillers,Tractors,Paddy trans planters,Harvesters..etc  are bright.Even the company adopted technology from foreign companies in the initial years ,VST having its own R&D facilities,good brand name and marketing  and servicing network.Considering its strong balance sheet , well experienced promoters and good potential of the industry recommending a BUY for long term investors.Stock is trading near to its 52 week low price @ Rs.340/-

Link to Company website HERE 

Link to latest AR HERE


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