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