A Lion’s eye on the Bulls and Bears

“In India, companies may fall sick, but promoters rarely do!”

Gaurav's Blog


Day: August 6, 2008

Fabulous Quarterly Show by Sabero Organics Gujarat…..Rs 24

The Crop Protection Chemical Company,Sabero Organics has announced a few days ago fabulous three months ended June 30,2008.It has earned Rs 6.3 crs on sales of Rs 82 crs ,of which Rs 39 .33 crs were exports….compare this with routine quarterly sales of just over Rs 40 crs and a profit of Rs 5.3 crs for whole of 2007/8

On an equity of Rs 29 .36 crs the annualised EPS works out to over Rs 8.50 giving a multiple of under 3

At Rs 24 it is available at what it’s book value should be at year end FY 09 as networth crosses Rs 70 crs….It has suffered from high debt/equity ratio….this should be favourably resolved this year with high profitability

No wonder the Share Price raced away from just Rs 9  a month ago to several upper circuits past few days to touch another upper circuit of Rs 24.82 on BSE today and close slightly below it.In January 2008 it has crossed Rs 33

Last five years Sabero has managed to keep it’s head above water and show a positive book value above par but has not paid any dividends…For FY 09 expect a dividend

The company has witnessed a good growth in the recent quarters due to strong global and local demand for its products. With recent approvals of registration of the company’s products in Brazil, Taiwan, USA & Europe, the company hopes to increase its sales in these markets in the subsequent quarters.

The company has decided to expand the production capacities of its Mancozeb, Glyphosate and Chloropyrophes plants, and is taking action to implement the same in the near future, to capitalize on the global opportunities of these products on increased demand.

The Joint Venture of the company in Brazil, Viz, Markan Argoquimica Ltda wherein the company holds 44% shareholding and has joint management control, started operations in 2007-08. The sales of the JV company the quarter ending June 30, 2008 was Rs. 5.5 2 crs and loss was Rs. 0.55 crs The same has been consolidated to the extent of the shareholding in the JV company.

Sabero Organics Gujarat is promoted by the Chuganees who own 38.80 % of the Equity….just spotted a Midday article today that Bhakti Mohit Chuganee was the only woman who gave her correct name and address when arrested in Mumbai in her Mercedes for Drunken Driving…she was jailed for a day and her license has been suspended for six months…she is the wife of the Vice Chairman and Managing Director of Sabero…probably out celebrating the Company Results ! 

The First Quarterholds out promise for the rest of the Year…..Watch Sabero…probably take a small exposure in it   read more

Proof Of Insider Trading in RPL…Yet Blind Eye Turned by SEBI

Today’s Front Page of Business Standard carries detailed proof of how Several Companies connected to the Ambanis of Reliance Industries short sold 105.8 million shares of RPL in the Derivatives Segment with inside knowlege that RIL was to offload 4.01% stake in RPL and the price of RPL would crash…..Check it Out at


Entity name Quantity*
(in million shares)
(In Rs crores)
Aarthik Commercials Pvt Ltd 9.0 45
Fine Tech Commercials Pvt Ltd 9.0 32
Dharti Investment and Holdings Ltd 13.9 50
LPG Infrastructure India Pvt Ltd 9.0 45
Vinamra Universal Traders 16.5 45
Pipeline Infrastructure India Pvt Ltd 9.0 45
Gujarat Petcoke and Petroproduct
Supply Pvt Ltd
9.9 55
Relogistics (India) Pvt Ltd 8.0 9
Relpol Plastic Products (P) Ltd 13.0 44
Darshan Securities Pvt Ltd 8.5 31
Total 105.8 401
* rpl shares sold on nse f&o between Nov 1 and 6, 2007
** Profit made from short sales
Source: Letter written by Amar Singh to Sebi

The SEBI Chairman at the time ,Mr Damodaran did nothing about it though he was aware of this….Will the Current Chairman,C B Bhave investigate fairly and without bias ?….your guess is as good as mine….but I’ll tell you this….Watch out for Mukesh Ambani too firing a salvo at Anil Ambani….also if Amar Singh could have obtained such details it could have only been from the exchanges….why could not the Exchanges and SEBI have investigated at the time itself…It’s clear they did not want to

If you recollect that RIL sold over 4% of it’s stake in RPL in the open market in November 2007 from November 6 to November 23,2007….Check it out as below  


The High and Low registered by RPL’s Share Price on the BSE from November 6 to November 23,2007 was Rs 282 and Rs 197.50…If I recollect correctly RIL realised an average of over Rs 230 for the sale…Check it out below


The RIL Connected Entities short sold RPL in the first week of November 2007 before RIL began selling RPL in the open market….The Timing,the Connected Parties Involved,the subsequent Price Fall,the Scale of Short Selling….all point to a clear case of Insider Trading……SEBI goes after the small fish and leaves the Big Fish alone….was the short selling orchestrated from the Capital ?

Yesterday Supreme Court Judges helplessly screamed out ” Even God cannot save this Country !” in context of a case where Government Quarters were not being vacated and Government was not keen to amend the laws that Supreme Court had directed to do 

I had personally done a case study on another Insider Trading Circumstance at BSE and even emailed the matter to Damodaran,then Chairman of SEBI…..he or his office deleted it without even reading it !  

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