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Thursday, April 22, 2010

**[investwise]** Sabero Organics BSE 524446-Changing Orbit

 

Sabero - Changing orbit

While lot has been circulated to our readers on this counter , Sabero organics is now in the process of delivering the unexpected , watch out for this one and accumulate with a four to six month view . We expect the stock to move into a new orbit ,Purely on the valuation front  the company is poised to grow at a CAGR of 32-35% over the next 2-3 years given its steady business model.
 
The company is looking to introduce new products and obtain more and more registraton of its products in various overseas markets to expand its footprint and grab a dominant share in the crop protection industry. There is a need to improve the agricultural production per hectare as population increases, which will lead to huge demand for plant protection products.
 
At the CMP of Rs.84, the stock is trading at 5.5x and 4.3x its FY10E and FY11E EPS of Rs.14 and Rs.17.83 respectively which is at a huge discount to its peers. The company is poised to grow at a CAGR of 32-35% over the next 2-3 years given its steady business model.
 
The company is looking to introduce new products and obtain more and more registraton of its products in various overseas markets to expand its footprint and grab a dominant share in the crop protection industry.There is a need to improve the agricultural production per hectare as population increases, which will lead to huge demand for plant protection products. 
 
Expect a healthy re-rating very soon.

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

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