VST Tillers Shares Rise 18% on crossing 500,000 power tillers production milestone

VST Tillers Ltd announced the debut of its premium utility tractors under the Zetor brand in Q1FY24.

VST Tillers Tractors Ltd's share price raised by 18% after reaching a production milestone of 5 lakh power tillers from its manufacturing plant in Malur, Bengaluru.

As per the company officials, The VST power tiller industry is around 60,000 units in India and is likely to expand to 100,000 units by 2025. VST Tiller is the leader in this field and has a market share of over 65 per cent in India.

Recently, VST Tillers Ltd stated that its top-of-the-line utility tractors would go on sale in Q1FY24 under the Zetor brand. The company is India's largest producer of tillers and 4WD Compact Tractors, as well as one of the leading producers of Tractors, Engines, Transmissions, Power Harvesters, and Precision Components. Additionally, VST's products are also available throughout Europe, Asia, and Africa.

As the firm reported that its manufacturing facility in Malur-Benguluru, Karnataka, had reached the production milestone of 5 lakh power cultivators units, VST Tillers' shares increased by 18% to Rs 2,575 in intraday trade on the BSE.

VST smart agricultural machinery is suited for all stages of agriculture, including water pits, intercropping, embankment, soil turning, and weeding, and is ideal for crops such as rice, sugar cane, cotton, vegetables, ginger, and many more.

VST is also considering increasing its annual R&D expenditure from Rs 40-50 crore to Rs 100 crore in the coming years. It would aid the company's attempts to convert from a power-tiller-centric company to a farm mechanisation company and attain Rs 3,000 crore in sales by FY26.

Nonetheless, VST Tillers has underperformed in the market during the previous year. VST's market value has climbed by more than 200% in the last three years, but it has also decreased by 4% in the previous year.

As per the senior officials, the company has not experienced any fruitful results in tiny tractor models where it is a well-known name, it would be expanding its product line by launching the more enormous horsepower HP utility tractor.