Monday, July 16, 2012

SABERO ORGANICS GUJARAT LTD - RESULT UPDATE



 

I have recommended a BUY on Sabero Organics about 6 months back @ Rs.55/-(For old report Click HERE) which is currently  trading around Rs.130/-. For the quarter ended June 2012, company posted excellent result which clearly indicating the success of the strategy initiated by the new management. Company posted sales growth of almost 100% and reduced the loss substantially. Considering the strength and experience of Murugappa group in agriculture related business ,I feel the good days are just coming for this company and a long way to go.Even after about 130% rise from the initially recommended price ,recommending to HOLD for long term and any dip below Rs.115/- may take as an opportunity to add more.Stock will be shifted to 'T' group wef .20/07/2012

15 comments :

  1. Subject: INFLATION FIGHTER PLAN FOR UR REVIEW AND COMMENTS

    DEAR SIR,
    I M TRACKING YOUR BLOG FROM LAST THREE YERAS.
    I HAVE BEEN ABLE TO BOOK 20-30% PROFIT EASILY BASED ON YOUR RECOMMENDATION.
    I HAVE NOW PREPARED ONE INVESTMENT PLAN FOR SYSTEMATIC MONTHLY INVESTMENT AND SYSTEMATIC WITHDRAWAL PLAN AFTER 2 YERS.

    DETAIL OF PLAN :
    STARTING FROM THIS JULY,
    I HAVE PLAN TO INVEST IN 7 SCRIPTS PER MONTH. ONE SCRIPT INVESTMENT IS 500/=. HENCE TOTAL INVESTMENT TO BE 3500/= PER MONTH IN SEVEN SCRIPTS.
    THIS IS TO BE MAINTAINED CONSTANTLY EVERY MONTH.
    AFTER 24 MONTH, FROM 25TH MONTH ONE HAS TO ALSO KEEP INVESTING 3500/= IN SEVEN SCRIPTS/MONTH.

    BUT, FROM 25 TH MONTH, WITHDRAWAL ALSO WILL START IN SEVEN SCRIPTS PER MONTH/WHICH HAS HIGHEST RISES FROM LAST 2YERAS SCRIPT.

    SCRIPTS TO BE CHOSEN BASED ON AS ON DATE HIGH POTENTIAL AND CHANCES TO RISE IN COMING YERAS AND TO BE VALUE PICKS.

    HOPE YOU WILL SEE SOME NEGATIVES AND POSITIVES IN ABOVE PLAN.
    PLEASE SEND UR VALUABLE ADVICE TO ME FOR THE FURTHER IMPROVEMENT IN THE PLAN.

    ReplyDelete
    Replies
    1. Truly speaking ,I have no practical experience in SIP ans SWP.

      Delete
  2. dear valupickji ,any comment on entering infosys on these levels for medium term.

    ReplyDelete
    Replies
    1. Dear Sumit

      Generally not tracking large caps

      Delete
  3. Dear ValuePick,

    Whats your view on Kaveri Seed Q4 result. Also,wil poor monsoon affect its Q1,which is normally the best quarter for Kaveri.

    Best Regards,
    Shankar.

    ReplyDelete
    Replies
    1. Deficiency of Monsoon in Southern states may slightly affect in this season.

      Delete
  4. Dear Value pick,

    I have 1000 shares of tree house education at 200 per share. can i hold them for long term. pls advice.

    -Ram

    ReplyDelete
    Replies
    1. Increasing competition in this field is a concern

      Delete
  5. Hi VP!

    Lets assume Sabero is able to clock a very optimistic 450 Cr this year and by some miracle it achieves a PAT margin of 10%. If all this is achieved in March 2013. The present 1 year forward PE is at 9x. Don't you think it is a tad expensive for a turnaround company?

    Thanks

    ReplyDelete
  6. Hi Value pick..

    Thanx for ur repeated recomendations on Granules.
    After a detailed study i entered the script at 120/- and made a big chunk of my portifolio shifted to it around 140/-.

    Now i would like to discuss few things, lately the company plans to produce more FDs so there is any chance in future to get the companies PE rerated to major pharma companies (Ruling between 20 - 30) or aleast near.

    If that too can happen then this share is a clear multibagger candidate with targets 1500+ with in 2-3 years time, since now also its mcap/sales lying at 0.5 and the company expects 40% growth in sales and better NP percentage going forward.

    Kindly share ur views..
    Rgds

    Zain

    ReplyDelete
  7. sir,
    pls help. We have added India Gelatine at 68 levels and now its falling down. Can we add more or was it a momentum call?

    pls do guide.

    ReplyDelete
  8. Zain,
    I think the company is good and worth adding on little correction. Building hope of 1500+ is not worth it and it is decided by marketmen. Many people buy stock with such hope and within few months they lose their confidence. Seeing the stock moving one gets over confident.. so if you are in good profit then hold it.

    I am waiting for correction to accumulate. Company looks good for long

    ReplyDelete
  9. Sir,
    The company had posted better results but the Interest costs has shot up which is denting the PAT.

    ReplyDelete
  10. SABERO ORGANIC & GRANULES both will be in 1500+ in next 1-2 years.Good long term buy.

    ReplyDelete

Followers

Tweet TopOfBlogs