Trigyn Tech - Multibagger potential

The latest results are out. It’s absurd to see current assets worth 172cr and total liabilities 52cr for a company whose full market cap is just 95cr and is hugely profitable as well!

Either the books are cooked, or the contingent liabilities are far more than what meets the eye.

At an ebitda of nearly 40cr, I’m willing to accept even 100% of the cash on books as fake. :smile:

Disc: long

I recently entered here. I read this list of won contracts and found that it should post good numbers ahead.

Also, 25,000 shares bought by Director in 15-09-2014.

Last time I saw trigonometry it was trading in nineties, what has happened in between for it to jump from 32 to 90?

As per the data on screener, the company has Operating cash flow (CFO) for last 7 years as -2.59 crores. In the same time they have declared a Net profit after tax of 190 crores (approx.). It means they are not able to collect their profits. This can be a real concern for the company. Since, they are not able to collect profits resulting in zero dividend.
I am still a college student. Please let me know if I am wrong somewhere.

Discl. Not Invested


For the last many years, all the profit cash flow was going into paying liabilities of subsidiaries which have all been liquidated now. So net cash flow was negative. But now there is no liability and so going forward we can expect cash flow to be positive and I think they will start giving dividend as well.

Looks like a very good turnaround. Orders are on the rise and their turnover and profit as well. I think it has good potential to keep going barring market crash.

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Please read the notes on this quarter result.

What does it say? I understand that Rs 51 Cr will come to the company reserve when SEBI etc clear it. The company has sold the subsidiary. I see the company’s cash flow is not good and I think this can help. Comment please.

Stellar set of numbers in Q4 (revenue growth+significant margin improvement) from Trigyn leading to stock price touching 52 week highs.
The management has given a very conservative estimate of 11% revenue organic growth and better EBITDA margins in FY17.

I am personally expecting the revenue growth (organic+inorganic) to be between 15-20% and PAT growth to be 30%+

Disclosure: Invested from lower levels

Company has got approval for capital reduction. The issue with the ECapital Solutions will be cleared off from the books.
In the scheme details, the company has mentioned that they will reduce the Share Premium Amount by subsequent amount. Can anybody share what will be the impact of all this on the balance sheet ?

Disc: Invested

Why the trade receivables are so high (150+crores).Its increasing Constantly from last 5 years and being debt free IT companies why no dividends are paid. Reply would be really helpful

Disc:Not Invested but looking to Invest

I had asked for why AR is increasing and any plans to reduce the same …did not received any reply
Disc invested from lower levels

Hello Everyone,

Can anyone tell why the company is planning for the Capital Reduction? What can be the probable impact of this on the Balancesheet?

i don’t see any logic of reduction of share capital. The stock is quoting at 106.

there will not be any impact on balance sheet, share capital will reduce and reserves will correspondingly increase and the share price will increase as the no. of outstanding shares will reduce.

but what is the need ?

I feel one of the reasons the company may want to go for share cap reduction is when the share price is quoting at low price and the mgmt might be anticipating a fall in price and doesn’t want the share to fall in category of penny stock.
I am not following Trigyn, hope the stock is fundamentally sound, or be careful.

Promoter holding
June 15 shareholding - 48.13 % , 0% pledging
June 16 - 47.65% , 11% pledging

Thanks for sharing your view…

In terms of valuation gap, I think the gap is really wide in case of Trigyn. From the last interview which the MD gave, he provided a revenue growth guidance at 11% for FY’17. This means they need to keep delivering at the current rate of 173 crores (delivered in last quarter) to meet the guidance. Also, there is scope for margin improvement to about 12-13%. All this works out to give a EPS of about 20 for FY’17. Now at current market price of 105, thats about a forward 12 month PE of 5.25. Things in US are improving. In my opinion its trading at super cheap valuations. Management seems to be trustworthy and fair. And I personally liked the fact that they gave conservative revenue guidance. This quarter will be critical for Trigyn. If they deliver numbers which are flat or even slightly better as compared to last quarter, a major rerating will take place.

Disc: Invested


Trigyn hasnt disappointed this quarter although I was hoping that they maintain their margins from Q4 FY’16. Still looks to be undervalued and should get re-rated sooner or later.

Disc: Invested

Recently Trigyn has pledged shares. Now, half of those has been released.
From 6.98%, now the pledge is just 3.61%.

What change they want in Object Clause in the Memorandum of Association?
Anyone please.

Thanks for the update. That’s a welcome news and should reduce the concern and fear of many as pledging is taken very negatively irrespective of its quantum creating short term inefficiency in the pricing.

So far as amendment in object clause is proposed, It is for reduction of capital and as per following link either to 1) return surplus of capital or 2) facilitate share buyback or redemption and both are very positive for the shareholders.

You can read more about it here:

Thanks for the reply. From your point, I see that either capital reduction or dividend can happen. I was aware of share buyback plan.

But object clause is not about that. That is about purpose of business. So, I don’t think that for capital reduction or dividend they are changing object clause.

May be. This is why I think so. Look at the subject in this filing…

For more clarity on the same, the best is to talk/email to CS

The change of object clause and capital reduction scheme are separate topics. Capital reduction scheme is only meant for historical adjustments to reflect the true net-worth of the company (as per the scheme documents shared on their websites). Reflecting the true networth might lead to dividend payments in the future.

In terms of object clause change, although not much details are available as such (still searching what the old object clause was), it will only lead to defining the “lines of business” in which the company operates in (or may operate in the near future). To me, this will only signal an intent but concrete actions will only be established if the company moves in that direction. Also, one reason can also be to remove some unwanted items from the object clause (which were present historically but are no longer relevant to companies lines of business).
Better would be to write to them or wait for more details.

The release of pledged shares is definitely a good news. However, it would be even better if they can reduce the pledging to zero

Disc: Invested