TIRUPATI STARCH CHEMICALS LTD Rs 27

Indore based TSCL is engaged in production of Maize Starch Powder
which are used by Food and Pharma industries.

TSCL had production capacity of 60TPD which last year has been
quadrupled to 240TPD. Company is making variety of products from maize
i.e. Liquid Glucose, Dextrose Powder, Corn Meal, Corn Oil etc

Although company has incurred Loss for FY16 due to big upsurge in
Finance cost and depreciation, caused by capex incurred for capacity
expansion, yet stock is being recommended for investment as (a) Stock
is attractively priced with current market cap of just Rs 16 crores
(b) Company made CASH PROFIT in FY16 (c) Co should make reasonable Net
Profit in FY17 and NP in FY18 should have decent nos

                            FY16

Sales                    158

Depreciation           4.49

Finance cost           6.17

Loss                    -1.51

Equity                    6.09

In FY16, depreciation was 4.49 crores as against 1.69 crores in FY15.
Moreover, finance cost rose to 6.17 crores as against 1.35 crores in
FY15.

Although TSCL made Loss of 1.51 crores but there was CASH PROFIT of Rs
2.98 crores, giving Cash Eps of Rs 5 (In Q4 TSCL reported Sales of 44
crores and NP of 1.17 crores)

                          FY17E      FY18E

Sales                180            200

Net Profit             3              5.50

EPS Rs               5              9

TSCL appears investment worthy at current levels. Downside from here
is very very low. However, upside can be fast and big. Low risk high
reward opportunity. Share price of TSCL can appreciate more than 100%
in 12-15 months