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

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Sabero Organics

Two Rs 75 Scrips that yet look interesting…Sabero Organics & S Kumars Nationwide

Two Rs 75 Scrips….Both yet look fundamentally interesting,depsite their significant rise past two years……Crop Protection Chemicals,Sabero Organics & Textile Retailing, S Kumars Nationwide….clients have interests in both..have recommended them earlier too…they yet look good for further appreciation to Rs 100+ in the coming Year…consider for the Growth Segment of your Equity Portfolio…they may no longer be a constituent of the Multibaggers Segment with entry at these prices

Cheers !

Sabero Organics kissing Rs 70 ….up from Rs 45 in under a week !

Regular Readers of my Blog would recollect Sabero Organics

I had recommended it on August 8,2008 at Rs 24 Fabulous Quarterly Show by Sabero Organics Gujarat…..Rs 24  and yet again this year on September 4,2009 at Rs 35 Sabero Organics up but FII,Clearwater Capital seen exiting ! Why ?  

 It’s zoomed away to near Rs 70…infact was Rs 45 last week….To check out why refer to my earlier blogs on this Scriptech Select Stock and you’ll be convinced Rs 100 is not to far away now!

Nitin,you responded to my previous blog that you would appreciate some ‘Bamboo’ seeds…this is one of them….search my blog…you’ll find I’ve planted several such seeds 

Sabero Organics up but FII,Clearwater Capital seen exiting ! Why ?

On August 6,2008,just under thirteen months ago I had blogged that Sabero Organics looks good at Rs 24..Click on

It had then dropped to Rs 12 in the market meltdown and since then has shot up to near Rs 40…Today it’s Rs 35 and has given an excellent June quarter performance…PAT is Rs 11.20 crs on Sales of Rs 121 crs,of which Exports are Rs 80.49 crs or a healthy 66%.Operating margins have surged from 14% to 18% levels 

It’s book value was Rs 25 at March 31,2009 and should be close to Rs 35 by end FY 10 with networth crossing Rs 100 crs…So Forward FY 10 P/B is 1….. Earnings Multiples too look great…EPS for FY 09 was Rs 7+ and for this year should be Rs 12+…so you’re getting the scrip at a Forward FY 10 P/E of just 3…The Current Market Cap is just Rs 103 crs,that’s just 20% of FY 10 projected sales of over Rs 500 crs…The Debt situation should ease with the increasing profitability

The Company’s expanded capacities went on stream earlier this year and from Rs 366 crs sales in FY 09 it has an ambitious plan to cross Rs 1000 crs sales inside three years

The current Equity base of Rs 29.19 crs (FV Rs 10) is expected to dilute to Rs 34 crs in 2010 or early 2011 on conversion of warrants alloted to the Promoter group of Chuganees

The Company should give dividend for FY 10..It skipped it for FY09 despite a great turnaround perfromance and an EPS of Rs 7.47

With such current and potential perfromance,the share price can only be expected to move northwards to cross Rs 50 first and then the three figure mark


On March 31,2009,the shareholding pattern showed  CLEARWATER holding a 11.42 % stake in Sabero with 33.34 lakh shares…On June 30,2009,the shareholding pattern showed CLEARWATER with only a 5.09% stake…since then too,the selling has been happening and as per last records as of July 24,2009 on BSE,the shareholding has further dwindled to just 3.03%…that’s 883583 shares…so 25 lakh shares have been offloaded by CLEARWATER since April 1,2009 and records show that sales have been at prices of Rs 23 thereabouts,much lower than the current Rs 35

Infact the more CLEARWATER kept on selling,the higher the Price went !…someone has been absorbing this sale….raises valid questions as to whether was CLEARWATER merely warehousing or fronting these shares all these years…why would they sell off now that the company has got a brighter future than at anytime in the past ! ? Do they know something we don’t ?…then it would amount to Insider Trading !…or are they selling because they need funds desperately or that such a small holding (under US $ 2 million or Rs 10 crs) does not now fit in or make sense in their Indian Operations ? read more

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