Sandeep Jain Recommends VST Tillers Tractors on Zee Business with Upside Targets of ₹4,050 and ₹4,130

May 5, 2025 — In a recent episode of Zee Business, seasoned market analyst Sandeep Jain shared a bullish outlook on VST Tillers Tractors Ltd, a small-cap player in the agricultural machinery segment. The recommendation came during the channel’s morning segment, where Jain highlighted VST Tillers as a technically strong setup with potential for short-term upside.

At the time of his recommendation, the stock was trading around ₹3,720. Jain suggested two upside targets — the first at ₹4,050 and the second at ₹4,130. He pointed out that the stock’s 200-day exponential moving average (EMA) lies at ₹4,028, which makes it a crucial resistance level. A successful breach above this zone could signal a breakout for positional traders, according to him.

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VST Tillers, with a market capitalization of ₹3,199 crore, currently trades at a P/E of 30.6, slightly below the industry average of 31.5. Its book value stands at ₹1,129, and it maintains a low debt-to-equity ratio of just 0.01, making it a fundamentally robust company. The company also holds a Return on Capital Employed (ROCE) of 17.6% and a Return on Equity (ROE) of 13.5%, which are decent considering the cyclical nature of its business.

Recent performance, however, has seen some volatility. For the quarter ending December 2024, the company reported a significant dip in net profit to just ₹1.70 crore, compared to ₹44.93 crore in the previous quarter. Operating margins also shrank to 8.92%, reflecting pressures in the business environment. That said, the stock still maintains a solid Altman Z Score of 7.27, indicating long-term financial stability.

The shareholding structure remains stable, with promoters holding 55.64% of the company and no pledging of shares. Institutional interest has been steady, with DIIs increasing their stake to over 20% as of March 2025, signaling confidence in the long-term story.

According to available consensus ratings from four analysts, the sentiment on the stock is mixed — 50% recommend a ‘Buy’, while 25% each suggest ‘Hold’ or ‘Sell’. This highlights that while technical momentum may be building, some caution remains on the fundamental front, especially due to recent earnings volatility.

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Despite the short-term dip in profitability, VST Tillers continues to maintain strong free cash flows, solid promoter backing, and practically zero debt. For investors with a short-term trading mindset, the levels mentioned by Sandeep Jain, especially around the 200 EMA, could offer actionable insights.

Disclaimer

This article is a summary of a stock recommendation made by Sandeep Jain on Zee Business on May 5, 2025. The content is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any stock. FinanceXAditya does not offer investment advisory services. Please consult a SEBI-registered financial advisor before making investment decisions.