Company : Tyche Industries Ltd
BSE Code : 532384 ( CMP : Rs 17.15, closing price on BSE - 3rd June, 2009)
Website : http://www.tycheindustries.com/
Business : Contract Research / Manufacturing of API's, Intermediates, Nutraceuticals, and Fine & Specialty Chemicals
Company has :
- 5 manufacturing units across 2 sites in A.P – Kakinada & Tanuku
- Kakinada facilty in the process of obtaining USFDA approval
- Setting up new project in East Godavari., A.P.
- Got ISO 9001:2000 certification
- Zero Debt Company
- Paying dividend since last 4 years
- Showing steadily increasing trend in Sales / profits
A company Tyche Chem has taken 14.88 % in market purchases in Dec 08 qtr. The name suggests that they are associated with Tyche Industries, though not listed as a promoter entity. The inference from this market purchase seems obvious – that there is value in the listed company.
Tyche Industries - Financials
Equity : 9.84 Cr
Book Value : 20.6
Year Ending : 2005 - 2006 - 2007 - 2008 - 2009 (9Mths)
Sales (Rs Cr) : 5.4 - 19.3 - 27.2 - 29.2 - 27.1
NP (Rs Cr) : 0.5 - 3.6 - 4.5 - 3.4 - 4.7
EPS (Rs) : 0.51 - 3.68 - 4.36 - 3.35 - 4.59
Dividend : 5% - 10% - 15% - 5% - n.a.
- Company was originally in the Software business (as Siris Soft Ltd) but shifted to current business in 2003-04. [ Note : The company is not listed as a part of the Siris Group of companies whose flagship company Siris Ltd is under BIFR. However the promoters are related - i beleive the Tyche promoter is the son of the Siris promoter.]
- Like with most small companies, there appears to be no proper compliance set-up , else the acquisition of 14.88 % stake by Tyche Chem should have been formally intimated to the stock exchanges when the 5% & 10% stake was triggered.
- Annual Reports of the company do not give sufficient details regarding the future plans of the company, nor the SWOT analysis
Conclusions & Recommendation :
The company looks worthy of analysis & research by investors. It's dividend paying track record (likely to be continued this year) & zero-debt status gives comfort. However, as with most small-caps, enough information is not freely available & so investors are advised to do their own strict due diligence.
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