VST Tillers soars 14% on pact with US firm to develop electric power tiller

The company has entered into a Master Service agreement with US-based Solectrac Inc. to jointly develop electric power tiller and other agricultural machineries

Shares of VST Tillers Tractors zoomed 14 per cent to hit a fresh high of Rs 3,790 on the BSE in Friday’s intra-day trade after the company announced entering into a pact with US-based Solectrac Inc. to jointly develop electric power tiller and other agricultural machineries. 

At 01:24 pm; the stock was trading 10 per cent higher at Rs 3,655, as compared to a 0.36 per cent rise in the S&P BSE Sensex. Thus far in the current calendar year 2023, it has zoomed 57 per cent, as against a 6.3 per cent gain in the benchmark index.

VST Tillers is a major producer of agricultural gear and equipment in India. The firm offers a variety of goods aimed to improve agricultural productivity, with a concentration on power tillers and small tractors.

VST Tillers is recognized for providing efficient, user-friendly, and cost effective solutions to small and marginal farms. The company has modern tractor manufacturing facilities at Hosur, Tamil Nadu, and power tiller manufacturing facilities at Malur, Karnataka, as well as a precision component plant in Mysore.

VST has expanded globally with a predominant presence in Europe in the last 10 years and has become a popular brand for compact tractors.

The company has witnessed a 20 per cent growth in power tillers business and expects this to continue for the next two–three years. The company is targeting a CAGR of above 20 per cent in three years.

The management expects the tractor business to grow faster than industry as the company is entering into utility tractor space and already has a "good presence" in compact tractors.

With new product launches, import curbs on power tillers and a strong focus on the tractors segment, the company is on the growth path and set to achieve its top-line target of becoming Rs 3,000 crore company by FY26, VST Tillers said in its FY23 annual report.