Skip to main content

Small Cap Pharma Scrip for Multibagger Gains

 TYCHE INDUSTRIES LTD Rs 45/

Hyderabad based Tyche Industries Ltd is engaged in manufacturing and marketing of Active Pharma Ingredients (API) & Intermediates. Company is also producing Chiral Intermediates and Nutraceuticals. In fact, Tyche is one of the largest producer of Glucosamine Products in India which are also exported to USA and Europe. Until FY11, company had been stagnating. However, since last year, Tyche has been growing rapidly in terms of topline as well as bottomline. Moreover, Tyche has small Long Term Debt of just 1 crores and interest cost as percentage of sales are very very low. With sharply improved results in recent past and expectation of continued improvement, Buy recommendation as scrip is available at very low valuations.
FUTURE OUTLOOK;
                                    

                                                 2014-15

Sales                                              160

Profit after Tax                              12.50

EPS Rs                                         12.20

Tyche has planned to set up a new plant and has already procured 5 acres land in Vishakhapatnam.  Proposed capex and capacities are at planning stage. This new plant should be operational by H2 of FY15.

For FY14, Tyche can achieve topline of 135 crores and Eps of Rs 10. Scrip is available at just 2.50xFY14E Eps and at 2.10xFY15E Eps.  Current market cap is just Rs 25 crores. Pharma industry has been growing at phenomenal pace and has extremely bright prospects. In such a scenario, Tyche is available dirt cheap. Investors may buy big quantity and hold for the scrip for 2-3 years for REAL MULTIBAGGER GAINS. Scrip can be Rs 80 in less than 1 year and can cross Rs 150 mark in less than 3 years. Downside from current levels is negligible (unless broader markets crash)


Tyche Industries has reported a sales total income from operations of Rs 16.16 crore and a net profit of Rs 2.07 crore for the quarter ended Jun '15


Comments

  1. some part of your analysis.. looks like the same one in Jan-2014 .. http://www.indianotes.com/Financial-Results/Small-Cap-Pharma-Scrip-for-Multibagger-Gains-Tyche-Industries/185765/13190101.00/C

    ReplyDelete

Post a Comment

Popular posts from this blog

Best Buy For Monday Upper Circuit Expected TCI FINANCE

*Intraday & Short Term News For Monday* *Fii And Dii News*   *TCI FINANCE LTD (501242 & NSE) (31)*   Incorporated in 1973, TCI Finance Ltd (TCIFL) is a Non-Banking Finance Company (NBFC) registered with the RBI and engaged in the business of Inter-Corporate Deposits, investment in equities of bodies corporate etc.   The Company was promoted by Mr. Mahendra Agarwal, who is also the Managing Director and CEO of Gati Ltd, a pioneer in express distribution and supply chain and promoted by TCFIL   The Rs.2 paid-up share of Gati Ltd currently trades at Rs.113. TCIFL has one subsidiary - ITAG Business Solutions Ltd engaged in the business of Knowledge Process Outsourcing (KPO) in the domain of Intellectual Property Services.   *It is co-promoter of GATI LTD. Company is holding 55,12,455 shares (5.09%) stake in GATI LTD. At CMP value of investments is around Rs.62.3crore. Equity is Rs.12.87crore. Thus value of investment works out to Rs.48.4 per share ...

Danlaw Technologies India Ltd: For multi-bagger gains (BSE Code: 532329) (CMP: Rs. 60.75) (FV: Rs.10)

The earnings season so far has been weak and worries over domestic growth continue to weigh on the market sentiment which has led the markets back on the downward path.. A value investor, however, need not worry about the broad markets as value stocks perform better and post good results. One such value-pick is Danlaw Technologies India Ltd. (DTIL). Company background: DTIL is the offshore technology and product development center of its parent company - Danlaw Incorporated, founded by Mr. Raju Dandu and Mr. Lloyd Lawrence in Michigan, USA in 1984. DTIL’s mission is to provide high quality services and products in Automotive Electronics, develop R&D driven Signal Processing technologies for communication and control, configure solutions and provide exceptional Information Technology (IT) services in the areas of education, health, banking and e-governance and provide world-class products and solutions for secured access through biometric access control technologies with intellige...

Some Opportunities Are left in Pharma Sector

Torrent Pharmaceuticals  reported impressive 75% growth in revenues and profit in the first quarter of FY 2016. The sterling performance was driven by the launch of new product in the US market, which has limited competition at present. The focus is on the therapeutic segments of cardiovascular and CNS. There is presence in gastro-intestinal, diabetology, anti-infective, pain management, nephrology, oncology, gynecology and pediatric segments as well. The manufacturing plants for formulations and bulk drugs have been approved by authorities of several regulated and semi-regulated markets such as the US, the UK, Brazil, Germany, Australia and South Africa. Capacity will increase almost 100% once the new plant at Dahej in Gujarat becomes operational. The plant will be one of the largest pharmaceuticals manufacturing facilities in the country at a single location. The unit will primarily cater to the key regulated markets of the US and Europe. Approval from regulators such...