Mehabe score: 4 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
Headquartered in Hyderabad, Tyche Industries is a leading player in Pharmaceutical Industry manufacturing API’s and Advanced Intermediates for API’s. #
Main Points
Largest manfucaturer of Glucosamine Hydrochloride
Tyche Industries Limited(TIL) is one of the largest manufacturer of in India of Glucosamine Hydrochloride and the related sodium and potassium salts. These products are mainly exported to USA & Europe. #Site:532384Main Symbol:TYCHE
Stock trades at 217.0, below its 50dma 217.61. However it is trading above its 200dma 210.6. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 217.61.
The 52 week high is at 349.90 and the 52week low is at 146.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 53.02% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 7.67% over past five years.
Competition
– The industry trades at a mean P/E of 28.3x. Pidilite Inds. trades at the industry’s max P/E of 99.87x. 532384 trades at a P/E of 13.4x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. 532384 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 6.4%. The max 1- month return was given by Alkyl Amines: a return of 16.23 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 12.39 cr compared to Rs 18.14 cr for period ended Jun 2020, a fall of 31.7%
Operating Profits reported at Rs 1.94 cr for period ended Jun 2021 vis-vis 6.24 for period ended Jun 2020 .
Operating Margins contracted -1874.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.69 compared to Rs 1.11 for previous quarter ended Mar 2021 and Rs 5.71 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 72.0 cr for period ended TTM vis-vis sales of Rs 78.0 cr for the period ended Mar 2021, a fall of 8.3%. The 3 year sales cagr stood at 10.1%.
Operating margins shrank to 28.0% for period ended TTM vis-vis 32.0% for period ended Mar 2021, contraction of 400.0 bps.
Net Profit reported at Rs 16.0 cr for period ended TTM vis-vis sales of Rs 20.0 cr for the period ended Mar 2021, falling 25.0%.
Company recorded a healthy Net Profit CAGR of 31.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 15.0 cr for period ended Mar 2021 vis-vis Rs 14.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -7% on a 1 Year basis vis-vis a return of 34% over the last 3 Years. – The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is -19% vis-vis a compounded profit growth of 52% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 38.03% vis-vis 38.03% for Mar 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 53.02% CAGR over last 5 years – The company has delivered a poor sales growth of 7.67% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 217.61 and is trading at 217.0. Shows a near term lack of buying interest.
