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

Dalal Street Tower Talk

Dalal Street Tower Talk   Singer India (Rs 182)--Singer Is a MNC Company in Which Promoter Holding Is 75 % Its Likely To Achieve EPS of Rs 6 Along With 15 % Dividend For The Fourth Quarter ended june 2015.Their Is also Likelihood of a Strategic Corporate Anouncement   Amines And Plastic:-Some Movement Can Expected In The Stock In The Coming Days (Bonus Buzz)  

KLRF Ltd: Hidden gem

KLRF Ltd: Hidden gem (BSE Code: 507598) (CMP: Rs.58.50) (FV: Rs.10) Kovilpatti Lakshmi Roller Flour Mills Ltd (KLRF) with its brand named ‘Kuthuvilakku’ came into existence in 1964 with the establishment of 46,800 MT of wheat flour mill at Gangaikondan in Tamil Nadu. The Company operates in five business segments: Flour Mill Division: The flagship division of the Company has an installed capacity of 74,000 TPA but operates at 70% capacity utilization with 30% spare capacity. From a traditional stone mill, it has transformed itself into a well-known manufacture of branded whole meal Atta that has more fibre, minerals and vitamins and is rich in aroma. The Company’s product portfolio comprises the entire range of wheat flour products that meet the demand of bakeries, paratha makers, hoteliers, sweet shops & confectioneries and domestic end-users. KLRF is a pioneer in tapping the high margin retail segment by launching 1/2 kg and 1 kg packs of Atta that are well-accepted by cons...

Stock Trading Ideas

J M FINANCIAL (52.40) Technically stock is looking explosive. One can watch this stock on every dips keeping stop loss of 49. On the upper side stock will zoom up to 56 level, cross over will take it to 59---65 levels in coming days… KARUR VYSHYA BANK (497.5) Stock is looking hot on chart & ready for more upside. One can watch this stock keeping stop loss of 486. On the upper side stock will zoom up to 503 level, cross over will take it to 517----525 levels in coming days… GRUH FINANCE (254.1) Something is cooking in this stock. Watch this stock keeping stop loss of 249. On the upper side, stock will zoom up to 265 level, cross over will take it to 272 levels in coming days…