Scripscan:Tirupati Starch & Chemicals Ltd
cmp:9
Code:524582
Investing-reflections:Tirupati Starch and Chemicals manufactures maize starch and dextrose products.Maize Starch finds applications in basic industries such as textiles, paints, detergents, paper, ceramics, pharmaceuticals etc. and Dextrose is used primarily in the food processing and pharmaceutical industries. It has two plants located at Indore that is currently running at full capacity.The company reported steady performance in the last five years – reporting about 6cr in operating profits on revenues of about 50cr in the last financial year. It employed a moderate debt load to finance its operations.Management haven’t discussed the business and its prospects in any intelligent manner to the company’s shareholders, which is a definite negative in their appraisal.The business is exposed to increases in maize and raw starch price as well as power costs arising from power shortages.The audit report contains several qualifications – a lot of which question the accuracy of the inventory records. This coincides with a large increase in inventory balances in the last financial year to about 9cr – perhaps a figure that investors ought to view with sceptical eyes. The report also gives a damning conclusion on the company’s internal audit system citing it as “weak”. This is unlikely to help investor confidence in relying on the financial statements.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
