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Tyche Industries


Tyche Industries operates in the pharmaceutical industry - manufacturing chemicals, bulk drugs, and drug intermediaries – largely Glucosamine Hcl and Racemic Sertraline, used for depression, Alzheimer’s etc.

The company reported moderately growing revenues but declining operating margins over the last five years.  It reported about 5cr of operating profits on about 45cr of revenues in the last financial year.  It operated with a moderate net debt load and reported net current assets of about 10cr as at 31st March, 2011.

The business is largely export-based and is hence, exposed to a strengthening INR. 

Management have purchased items from related parties amounting to 5cr.  Moreover, it has incurred heavy capital expenditure in purchasing leasehold land amounting to 6cr – purpose unknown.  Including this expenditure, the company has not generated free cash flows in the aggregate over the last six years.

Management haven’t put in the effort to intelligently discuss the prospects of the business – casting doubt on its commitment to minority shareholders since it cannot make the effort to write a few paragraphs to their partners even once a year.

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