VST Tillers Tractors Ltd

BSE Code : 531266, CMP 510. Buy in range of 480-510, and hold for 1.5-2 years for handsome gains...

V.S.T Tillers Tractors Ltd is a bangalore based company. It is promoted by the V.S.T Group, in collaboration and joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for the manufacture of Power Tillers and Diesel Engines. The company is into manufacturing of Power Tillers, Engines and Tractors.

As India economy is dominated by Agriculture and still it is have large scope for introducing technology into it. Since population is growing, food prices are also rising slowly. To increase productivity in agriculture sector government is bringing in various schemes and giving subsidies to farmer on use of Tractors and other machinery. The sales of power tillers have been increasing since last couple of years and VST tiller future looking promising as per that.

The Company is a market leader in Power tiller and have 50% market share. Earlier company was producing tiller and tractor on its same Bangalore plant, but seeing the demand of tiller company had started a new facility for tractors and Bangalore plant will be making tiller, so it should post good growth in sales of tiller in coming years..Company is planning to focus on tiller with 65-70% revenues coming from tiller segment.

The company has market capitalization of INR 440 Cr, and trading at FY 12 PE of 9.5 approx. We expect it to command PE of 13-15 in good markets and as its profit grows, one should see re-rating happening in the counter. The company maintains a very good operating profit margin of 17.41% and net profit margin of 10.86%. The company has proved its worth over the years by maintaining Return of Equity of over 33%.

Company is looking good at this valuation and one can look forward to 100%+ returns in next 1.5-2 years in this counter.

For any query mail us at multibaggerpicks.info@gmail.com

Piccadilly Agro Industries Ltd

Piccadilly Agro Industries Ltd. Bse Code: 530305
CMP: 34 Rs
Collect 70% at CMP and 30% at 31 levels.
Target short/medium term 54-60 rs till March 2012. Long term target of 150-180 levels in next 2-2.5 years.


Piccadilly Agro started with Sugar business long back, and struggled a lot. Last 4 years they started liquor production and expanding it very fast. As we all know demand for liquor will never end in this world so it business is going to grow many folds. They are in Haryana region and have strong presence of thr brand in that region. They have good contacts which is helping them in getting license and all process done smoothly. Results of liquor started showing in, and the demand is good and revenues growth is good. Last year EPS was 11.4 but posted weak results in June qtr hence had to witness the fall, expect good results again soon and re-rating of the counter in coming 6-12 months..So next 3-4 qtr will be good for this counter. Since it is very much corrected from highs and now in range of 30-34 we recommend 70% buying now and 30% at deeps. Dividend of 2 rs is on card which gives 6% approx dividend yield on cmp and record date is 23rd Sep 2011. Also it had shifted to liquor industry but PE re-rating is still not done, hence expect PE re-rating as per sector in coming years, So buy this counter at cmp and falls and hold for 2-3 years to get handsome returns....

For any query mail us at Multibaggerpicks.info@gmail.com

Updates

Atul Auto--Giving right for every 4 shares investor will get 1 shares @ 30 rs per share. One should definitely apply and hold the stock for long term.

Dhanuka Agritech--If sold higher buy on fall to 98 and 84 levels.

Cera Sanitary ware--Buy on falls..

Shirpur Gold--As gold prices increased, and looking to go higher further, it margins and bottom line also should rise with increasing top line, so expect total re-rating in the counter in next 12-15 months...Hold and buy more and more...

for any query mail at multibaggerpicks.info@gmail.com