UPDATES - GRANULES INDIA LTD,SABERO ORGANICS ,ALPHAGEO

GRANULES INDIA 

From a level of Rs.79,this stock recommended at least five times in the past .  Today ,Granules India hits its 52 week high @ Rs.192.( Initial Recommendation HERE) .Company scheduled an Extra ordinary General Meeting on 6th December to consider various matters related with the acquisition of Auctus Pharma .I believe, this Rs.100 Cr plus company ( Auctus Pharma)  with USFDA approved plant for an amount of Rs.100- 120 Cr is not a bad deal for Granules in the long term. Still recommending to HOLD this stock.

SABERO ORGANICS

As in the case of Granules India ,Sabero Organics Gujarat recommended more than once from a level of Rs.55 onwards. Today stock closed around Rs.140 .( Initial Recommendation HERE) . Company reporting steady growth both in Sales and margins and already reported an EPS of Rs.7.50 in the half year itself against Rs.2.30 in last full year.Recently ,company received an instruction from Gujarat Pollution Control Board to stop its production from a unit located at Sarigam , Gujarat. But now ,company clarified that the authorities revoked its earlier order after a re-inspection and permitted more time to fully comply with the norms. Today in an interview ,company management assured that they are confident in meeting all required standards within the allowed three months time period .

Interview Link HERE

Requesting to HOLD the stock for long term

ALPHAGEO INDIA

This stock recently recommended @ Rs.38 which is currently trading around Rs..42 . As expected and indicated in my previous posting ,after a long gap ,company started to receive  new orders from Indian oil exploration companies .Now company received two orders in last week ( Link 1 , Link 2) .Along with orders it received from overseas in recent times , these new orders giving more visibility for  company's business going forward ( Fore more details ,read HERE) . One can HOLD this stock and even consider a BUY if ready to take above average risk.

SABERO ORGANICS GUJARAT - RESULT UPDATE

Sabero Organics Gujarat initially recommend @ Rs.55  ( For old posting ,click HERE ) which is currently trading around Rs.137 .For the latest September quarter,company reported a turnover of Rs.214 Cr v/s Rs.136 Cr  and a net profit of Rs.16 Vr v/s Rs.4 Cr .In the the first half itself  ,company reported a consolidated EPS of Rs.7.63 v/s Rs.0.63 . It is expected to perform well going forward due to hike in its product price ,higher demand due to good monsoon,better realisation due to rupee depreciation..etc..Recommending to HOLD the stock for long term.

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

SABERO ORGANICS GUJARAT LTD - BUY FOR LONG TERM

Sabero Organics Gujarat is an agrochemicals manufacturer promoted by Chuganee family.Company producing various fungicides, herbicides , insecticides and other speciality chemicals. Company having manufacturing facilities in Gujarat,Jammu Kashmir ,Tamilnadu and marketing offices in Europe, Brazil, Argentina, Phillipines and Australia other than various parts of India..Sabero's products includes Acephate, Mancozeb, Chlorpyriphos, Glyphosate, Dichlorovos, Methamidophos and Propineb.A major portion of its products are exported to various countries in their own brand names and also supplying products to other companies including well known MNC's.About 65% of its total sales is generated from exports and company's major asset is its product registration of more than 250 products in 50 countries.Company having many products registrations and strong presence in Brazil which is one of the biggest agrochemical markets in the world.Sabero came to limelight in recent past after the acquisition of the company by south based Murugappa group .'Murugappa group'is a well reputed business group from South India with deep knowldge in Agriculture related businesses along with others.Success of companies like Coromandel International and EID Parry is best example for their expertise in this field.Other listed companies from the same group includes Carborundum Universal,Cholamandalam Investment,Tube Investment,Coromandel Engineering..etc
Coromandel bought this company at a steep premium of 80 % to then prevailing market price and the deal concluded @ Rs.160/- per share.Also it paid Rs.38.47 extra per share as a non compete fee to the promoters of Sabero.Coromandel's strong marketing network is a big boost to Sabero where the largest customers are more or less the same.Management expertise and deep pockets of Murugappa group is added advantages.Due to lower capacity utilisation and higher overhead costs Sabero posted losses in first two quarters of this FY.In a recent interview Mr.Kapil Mehan MD of Coromandel indicated that they have took over the management of Sabero only in third week of December and their first priority is to enhance the capacity utilisation.He also mentioned that they are expecting the company will back to black in another two quarters. Earlier in FY 2011, Sabero posted a turnover of Rs.412 Cr and a net profit of Rs.10 Cr.I believe the massive capacity of its plants and the ability of Murugappa group will create  a multibagger from current price of Rs.55/-