Shares of VST Tillers Tractors rose 10 per cent to hit a new 52-week high of Rs 2,898.90 on BSE after the company launched the VST range of Tractors and Power Tillers in Southern Africa.
"The company has entered into an agreement with ETG (Export Trading Group), for distribution of its Tractors, Power Tillers, Power Reapers and Diesel Engines in the Southern African markets including South Africa, Namibia, Botswana, Zimbabwe, Swaziland, and Zambia," VST Tillers Tractors said.
The stock ended 5.23 per cent higher at Rs 2,782.55 against the previous close of Rs 2,644.25. With a market capitalisation of Rs 2,403.99 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has risen 49 per cent since the beginning of this year and has delivered 46 per cent return in the last 12 months.
The company added that the objective behind the distribution model of VST Tillers Tractors in ETGL’s portfolio is to expand its offering in the industry.
“VST is one of the fastest-growing brands in the agriculture segment and commands a leadership position in Power Tillers and 4WD Compact Tractors. We are focused on international business with exports of Tractors, Power Tillers, Power Reapers and Diesel Engines to more than 40 countries in Europe, Asia and Africa. Farm holding in most of the Southern African countries is dominated by small and marginal farmers, thereby making these small farm mechanization technologies a very relevant option," said Mr Antony Cherukara, CEO of VST Tillers Tractors Ltd.
"We are happy to be associated with a distribution partner like ETGL for bringing our products into Southern Africa. Their expertise and knowledge of the African market will be further accelerating our growth plans in the continent," he added.
"Our vision is to launch a range of products that can effectively reach and serve a diverse customer base, while offering value-driven farming solutions. These VST TRACTORs are versatile and can be used for varied purpose right from land preparation to use inside the tunnels. The Power Tillers or the walk-behind tractors are more appt to farmers with small land holdings," said Rajeev Saxena, CEO, ETGL.
According to MarketsMojo, the company has declared Positive results for the last 4 consecutive quarters and has a low Debt to Equity ratio (avg) at -0.28 times. Also, the technical trend has improved from Mildly Bullish on 17-Aug-21 and has generated 25.34% returns since then.
Multiple factors for the stock are Bullish like MACD, Bollinger Band and KST. However, it noted that the valuation is very expensive right now.
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