Tyche Industries Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹106.70+₹1.40 (+1.33%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Tyche Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tyche Industries Limited manufactures and sells active pharmaceutical ingredients and intermediates in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees167

Annual revenue₹54 Cr

How does it make money?

Turns over ₹54 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 167 employees supports ₹32.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹32.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -29% while net margin moved -31% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-29%

Margin effect-31%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.7% a year
✗ Profit has declined at 21.2% a year
✗ Latest-year revenue growth of -28.4% is below the longer-term trend — momentum is fading
✗ Profit fell 44.1% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

61/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

24.9x

3Y Median

12.5x

40 monthly readings · mean 12.6x · range 8.2x–16.2x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 99% above its 3y median of 12.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 25% below the peer median of 33.3x.

vs. its own history

Expensive

12.5x median over 40 months · +99%

vs. sector peers

Cheap

33.3x median of 4 peers · -25%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 12.1% to 4.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.9% to 6.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.8 points, from 27.8% to 21.0%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 51% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 25% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 27.8% to 21.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 99% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 12.1% to 4.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 21.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 6.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 12.5x✗ 24.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.83x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.28

Profitable

Profitable on a per-share basis

ROE

4.9%

Weak

Weak capital efficiency

ROCE

6.7%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-28.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-44.1%

Falling

Profits are shrinking

Dividend Yield

3.28%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

18.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

-25.4%

Weak

Thin margins leave little room for error

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

16.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

106.7 / 108.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹75 Cr	₹70 Cr	₹65 Cr	₹54 Cr	-10.7%
EBITDA	₹21 Cr	₹19 Cr	₹19 Cr	₹11 Cr	-18.7%
EBITDA Margin	27.8%	26.7%	28.5%	21.0%	—
PAT (Net Profit)	₹14 Cr	₹12 Cr	₹12 Cr	₹7 Cr	-21.2%
EPS	₹13.83	₹11.78	₹12.11	₹6.77	-21.2%
ROE	12.1%	9.7%	9.1%	4.9%	—
ROCE	15.9%	13.0%	12.1%	6.7%	—
Free Cash Flow	₹5 Cr	₹4 Cr	₹8 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 10.7% a year over 3 years.

🔴 EBITDA has shrunk at 18.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.8% to 21.0% over 3 years (-6.8 pts).

🔴 PAT (Net Profit) has shrunk at 21.2% a year over 3 years.

🔴 EPS has shrunk at 21.2% a year over 3 years.

🔴 ROE has fallen from 12.1% to 4.9% over 3 years (-7.2 pts).

🔴 ROCE has fallen from 15.9% to 6.7% over 3 years (-9.2 pts).

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹148 Cr

Total Liabilities

₹8 Cr

Total Debt

—

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.4%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

2 positive1 mixed3 general

Tyche Industries Q1FY27 net loss ₹4.17 lakh; audit qualified on revenue

scanx.trade, 14 Oct

Tyche Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Tyche Industries Q1 FY27 Results: Revenue and PAT Highlights

Univest, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Tyche Industries sets Sept 30 AGM, approves ₹3.50 dividend

scanx.trade, 02 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Tyche Industries Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

Om Power Transmission standalone net profit rises 25.99% in the June 2026 quarter

Business Standard, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-28.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 12.5x · see Key things to watch ↑