Friday, June 5, 2009

Tyche Industries : Unknown & Unloved - but for how long ?

Company : Tyche Industries Ltd

BSE Code : 532384 ( CMP : Rs 17.15, closing price on BSE - 3rd June, 2009)

Website :

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

Positives :

  • Zero Debt Company
  • Paying dividend since last 4 years
  • Showing steadily increasing trend in Sales / profits

Also :
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.

Negatives :

  • 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.

Disclaimer/Disclosure : At the time of writing this article the author has a position in the stock covered by this report. The author or any of his dependent family members may make purchases or sales of the securities mentioned in the report while the report is in circulation. Readers/recipients of this report are strongly advised to do their strict due diligence, and should be aware that the value of investments can go down as well as up. The author shall not be liable for any direct or indirect losses arising from the use of the contents of this report, and readers are therefore cautioned to use the information contained herein at their own risk. In fact, readers would do well to seek the advice of a qualified independent advisor. The author certifies that all of the views expressed in this report accurately reflect his personal views about the subject company at the time of writing this report. Feedback / brickbats may be hurled at the author at .