Financial Daily from THE HINDU group of publications
Tuesday, Dec 21, 2004
Agri-Biz & Commodities - Pesticides
Sabero Organics gains on export thrust
Mumbai , Dec. 20
THE stock of Sabero Organics, an agro-chemicals company, has been on a rise in the last one week on expectation of huge growth from its business, especially from the export market.
In the last one-week, the stock has gained 64 per cent to today's closing price of Rs 31.80 on the BSE. In today's trading, it was locked in the 20-per cent upper circuit both on the BSE and the NSE. It closed at Rs 31.75 on the NSE.
The number of shares traded today was also very high compared to its average volumes. On the BSE, 14.49 lakh shares were traded and on the NSE, 22.86 lakh shares changed hands.
An analyst with a domestic broking firm said Sabero is fast shaping up as a force to reckon with in the field of agrochemicals and pesticides. He said the company is at a stage where Hikal, United Phosphorus, Rallis and Excel Crop Care were three years ago..
The stock price of Hikal and United Phosphorus had gained sharply in the last three years.
He said Sabero has become a totally integrated manufacturer of pesticide intermediates and pesticides, with almost half of its revenues coming in from the export markets.
The company's focus on export market is seen from setting up three overseas subsidiaries. These are Sabero Australia Pty Ltd, Sabero Europe B.V. and Sabero Organics Americas Ltd.
Sabero exports to as many as 50 countries across the globe spread including Australia, Asia, Africa, Europe, Middle East and the Americas.Its wide customer base ranges from individual farmers to global corporations such as Syngenta, Bayer, Dow AgriSciences, BASF, Rhodia and others.
A top official of a leading domestic broking firm said the company has a modern R&D center, which is carrying out developmental work on new generics, which will be shortly going off patent, including insecticides, herbicides, fungicides and intermediates.
The success in this direction will enable Sabero to become a primary generic supplier, he added.
Several other brokers said the interest in the stock has come after the BSE decided not to suspend trading in the stock from December 21. Earlier, there were fears among investors that stock might be suspended from trading.
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