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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

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