Sharekhan Investor's Eye dated September 28, 2007

STOCK UPDATE

Surya Pharmaceuticals 
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs205
Current market price: Rs83

Strong growth at cheap valuations

Key points

• During FY2007, Surya Pharmaceuticals (Surya) has enhanced its production capacities and has improved efficiencies of its production processes through de-bottlenecking exercise. From a collective capacity of manufacturing 4,152 metric ton (MT) per annum, the company's current capacity stands at 5,423MT per annum marking an increase of 30%. The resultant capacity increase is expected to translate into higher revenues for the company's existing business of active pharmaceutical ingredients (APIs) and intermediates from FY2008 onwards. 
• Surya has also initiated construction of a new plant in the tax-haven state of Jammu. The Jammu plant will be constructed in line with the US Food and Drug Administration (US FDA) standards primarily to manufacture new APIs and sterile cephalosporins. With the commissioning of this facility, Surya will enter the high-margin injectable business. We expect the Jammu facility to contribute an incremental Rs100 crore to Surya's revenues in FY2009E.
• Surya has recently entered the business of manufacturing menthol and its derivatives. The company primarily intends to sell these products to its overseas clients, and the company has started exporting these products in August 2007. We expect the menthol business to add Rs50 crore to Surya's turnover in H2FY2008E and Rs100 crore in FY2009E.
• Having made a foray into the contract manufacturing space, Surya is now increasing its focus on the contract research area. The company is in advanced stage of negotiation with a British company for the development of a cost-effective process for a new molecule. Surya expects that partnering with the British company at this early stage of development will open up huge contract manufacturing orders for it, once the molecule gets commercialised. However, as the deal has not yet been finalised, we have not factored the upsides from this development into our estimates.
• We have introduced our FY2009E revenue and earning estimates for Surya. We expect Surya's profit to grow at a compounded annual growth rate (CAGR) of 55.3% over FY2007-09E on the back of a 46.2% CAGR in the revenues and a 100 basis point expansion in the operating profit margin. Based on this, we have projected fully diluted earnings of Rs28.8 per share in FY2008E and Rs32.1 per share in FY2009E. 
• At the current market price of Rs83, Surya is trading at 3.6x its FY2008E diluted earnings of Rs23.2 and at 2.6x its FY2009E diluted earnings of Rs32.1. The stock is highly undervalued when compared with its peers like Ankur Drugs, Sharon Bio-Medicine and Granules India, which are trading at an average FY2009E price earning (P/E) multiple of 7x. At current prices, Surya offers a remarkable combination of strong growth at cheap valuations. We view this as a strong buying opportunity and hence maintain our Buy call on the stock with a price target of Rs205. 

Marico 
Cluster: Apple Green
Recommendation: Buy
Price target: Rs70
Current market price: Rs61

Growth momentum continues
The copra prices have strengthened in the last two months but Marico has taken a price hike of 3% in Parachute, which will offset the increase in its raw material cost and help it to safeguard its margin. The company has been able to maintain its market share at 48%. The launch of Fortune (agro tech foods) has been a non-event for Marico since the same has not been able to erode its market share.

Seamec 
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs300
Current market price: Rs208

Unexpected damage
Seamec has announced that its vessel Seamec II has been damaged in its front portion due to a fire while the vessel was undergoing statutory dry-docking in a shipyard at Netherlands. The extent of damage is not certain as of now. However, it is clear that the dry-docking days for the vessel would get extended now, resulting in lower revenue and earnings for the company in CY2007.

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SECTOR UPDATE

Banking   

Banking sector poised for a re-rating
In this report we have discussed our views on the various macro aspects that have been a concern for the banking sector in the recent past. We have also delved into the various positive and negative factors that are likely to affect the banking sector in the medium term. Keeping in mind the strong interest of the investors in the financial sector, we feel the unfolding of the various positive triggers could lead to a re-rating of the banking sector in the medium term. Hence, we have revised our price targets for most leading banks (explained in detail later).

Banks	CMP* (Rs)	Old price target (Rs)	New price target (Rs)	Upside  (%)
Bank of Baroda	322.0	366.0	400.0	24.1
Bank of India	260.0	280.0	325.0	25.0
SBI	1886.0	1780.0	2282.0	21.0
HDFC Bank	1433.0	1355.0	1694.0	18.2
Axis  (UTI) Bank	768.0	725.0	960.0	25.0
*CMP as on September 27, 2007

 

Hindustan Organic Chemicals Limited : A Hidden Gem in PSU Area

Name: Hindustan Organic Chemicals Limited

BSE:500449

NSE:HOCL

Website: www.hocl.gov.in/index.asp

Current Mkt Price: Rs. 64.70 (as on 30/9/2007)

Target : Rs. 225 (18- 24 months)



Business Profile

Hindustan Organic Chemicals Limited (HOC) was set up by the Government of India in 1960 with the objective of attaining self-reliance in basic organic chemical needs. In fact this was the first endeavor to indigenise manufacture of basic chemicals and to reduce country's dependence on import of vital organic chemicals. HOC, started as small chemical unit, has today acquired the status of a multiunit company with two fast growing units and one subsidiary unit. The Company has achieved turnover of about Rs. 4500 million in 1999-2000.


It was expected that indigenous manufacture of these chemical intermediates will give impetus to downstream industries resulting in setting up of chemical units and achieving self-sufficiency for the country in this area. This objective of setting up HOC has been achieved and at present more than 500 units based on HOC's products have been set up all over the country which have not only succeeded in meeting the goal of self-sufficiency but also entered the international markets earning precious foreign exchange by exporting chemicals, dyes and drugs.

Main Manufacturing Units of HOC comprises

·The Nitro Aromatic Complex at Rasayani in Raigad District (Maharashtra)

·Polyurethane System House at Rasayani

·The Phenol Complex at Kochi (Kerala)

·The Polytetrafluroethylene (PTFE) Complex (Subsidiary) at Rudraram, Hyderabad (Andhra Pradesh)

HOC provides Basic Organic Chemicals essential for Vital Industries. The main products manufactured by HOC are Phenol, Acetone, Nitrobenzene, Aniline, Nitrotoluenes, Chlorobenzenes and Nitrochlorobenzenes. The raw materials used by HOC are Benzene, Toluene, LPG, Methanol, Naphtha and Sulphur, majority of which come from petroleum refineries.

HOC provides the basic organic chemicals essential for vital industries like resins and laminates, dyes and dyes intermediates, drugs and pharmaceuticals, rubber chemicals, paints, pesticides and others, touching virtually facet of everyday life.

It also produces the versatile engineering plastic polytetrafluoroethylene (PTFE) through its subsidiary.

Recent Developments

The disinvestment procedure of government`s 32.61 per cent stake in Hindustan Organic Chemicals Ltd (HOCL) is expected to be completed soon. Six chemical and fertiliser companies have submitted their expression of interest (EoIs) which include

Chambal Fertilizers and Chemicals, Vam Organic Chemicals, Schenectady India, Atul Ltd, Deepak Fertilisers and Petrochemicals and Rashtriya Chemicals and Fertilisers.

Financials


Technical Chart (Weekly)

 

 

Call and Put Option-Option Trading Basic Fundamental Theory

It is very common that stock is transacted in blocks divisible by 100, which is called a round lot. A round lot has become a standard trading unit on the public exchanges for quite sometime ago. In stock market, we have the right to buy and sell an unlimited number of shares as long as there are people are willing to sell and we are willing to buy at the price that the seller has fixed. Usually, for a brokerage firm, they set their commission for a transaction for minimum 100 units of share at a certain price. If we buy less than 100 units of share, they still impose us this commission. For an example, if we buy 100 units share and pay the brokerage firm USD 30 for the buy and sell transactions, they also charge us that amount: USD 30 also, if we only buy and sell 1 units of share. The amount of commission that the brokerage firm charges for the stock transaction is varied from one and other. Some brokerage firm may charge less but they require you to trade a lot in one transaction. So, each unit of option is representing 100 units of share.

In fact, there are two types of options that are call and put option. Call option gives its owner the right to buy 100 units of share of a company at a specified price that has been agreed between the call option owner and the seller within certain period of time. So, within this period of time, if the stock price goes up, the call option price will also go up and vice versa. The second type of option is put option. This option gives its owner the right to sell 100 units of share of a company at a specified price that has been agreed between the put option owner and the seller within certain period of time. Put option seems like the opposite of call option. If the stock price goes up within this period of time, the put option price will go down. Either call or put option can be bought or sold. As long as there are people willing to sell, there will be people willing to buy. There are four permutations that are possible exist during the transaction of an option. The first one is buying a call option meaning that buy the right for yourself to buy 100 units of share. Second is selling call option meaning that sell the right to buy 100 units share from you to someone else. The third one is buying a put option meaning that buy the right for yourself to sell 100 units of shares. The last one is selling a put option meaning that sell the right to sell 100 units of share to you to someone else.

The other way to make these differences clearer is always remember that the call option buyer hopes the stock price will go up and the put option buyer looking for the price per share to fall. For the opposite side, a call option seller is hoping the stock price will maintain or fall. Whereas, put option seller is hoping that the stock price will go up. If the option buyer no matter dealing with the calls or puts option is correctly predicting the price movement of the stock, then they will gain profit from their action. For option, there is another obstacle we have to face besides estimating the direction of the stock price movement. This obstacle is that the change of the stock price has to be taken place before the deadline of the option. As a stockholder, we may be able to predict a stock's long-term prospects by waiting for a long-term change of the stock. However, for option holder, we may not have that kind of opportunity. This is because options are finite; they will lose all their value within a short period of time, usually within a few months. However, it has long-term options that can last up to one to three years. Due to this limitation, time will be an important factor to determine whether an option buyer can earn a profit or not.

Foremost, option is granting the buyer an intangible right to buy or sell 100 units of share at an agreed price between the buyer and seller of the option. Therefore, option is just an agreement regarding to 100 units of share of a specific stock and to a specific price per share. Therefore, if the buyer buys an option at the wrong timing, then, the buyer will not able to make any profit. Wrong timing means that the stock price does not move or does not move substantially when the deadline has arrived. When we buy a call option, it seems like we are agreeing that we are willing to pay the price that being asked to acquire a contractual right. The right provided that we may buy 100 units of share of stock at a specified fixed price per share, and this right exists at the time we purchased the option until the deadline of the option. Within the time we purchased the option until the deadline of the option, if the stock price goes up more than the fixed price indicated in the option agreement, this call option will become more valuable. Just think that we buy a call option that granting us the right to buy 100 units of shares at the price of USD 70 per share. Let said before the option deadline, the stock price has gone up to USD 90 per share. As an owner of this call option, we have the right to buy 100 units of share at USD 70, which is USD 20 less than the current market price. This is the situation when stock market price is more than the fixed contractual price indicated in the call option contract. In this example, we as buyer would have the right to buy 100 units share, which is USD 20 less than current market price. Although we own the right to do so, we may unnecessarily to execute our right. For an example, how about if the stock price has gone down to USD 50. We would not have to buy shares at the fixed price of USD 70 and we could select not to take any action.

Futures and Options Contract Explained

The key to understanding options futures is what they are and how the work. By looking at the dynamics these futures contracts you will have a better understanding of the characteristics of options futures and in turn, have additional tools that you need in order to be a successful trader.

What Is An Options Futures Contract?

The best definition of an options futures contract is a form of trading commodities between buyers and sellers where an asset is sold at a mutually agreeable price and to be executed by a specific date. They are called options futures because it concerns a transaction that will take place in the future at the discretion of the buy. The buyer is simply purchasing the right to make the transaction; if he or she chooses not to complete the deal, it becomes null and void on the expiration date.

Options Contracts

There are two different types of options contracts; call options and put options; in options futures, a put option gives its buyer the right to sell the underlying asset while a call option gives the buyer the right to purchase the underlying asset.

For example, you decide to buy a call option on corn futures; you are going to buy 1,000 bushels on the 25th of June for a strike price of $5.50 per bushel and the current price is $6.00 per bushel. What you now have is an agreement to buy, if you choose, the corn on the above date for the listed price. If at any time up to the 25th the price of corn is above $5.50, you can sell your 1,000 bushels and take the profit, if you so choose.

Possible Scenarios

The date on the contract is the 25th of June; this is known as the expiration date. At this point in the options trading, the buyer must decide by this date if he or she wants to complete the transaction as outlined in the contract or walk away from the deal.

Suppose that on the expiration date of your options futures contract, (the 25th), the option value is $6.00 per bushel. You are able to buy the corn for $5.50 and resell it for $6.00, making a profit of $500. (1,000 bushels at a profit of $0.50 each)

Conversely, if the expiration date arrives and the price of your corn is only at $5.00 per bushel, you could simply walk away from the deal and let it expire. Remember when commodities trading, the buyer has only paid for the right to purchase the underlying asset of the options futures; he or she does not have to do so. If you allow this contract to expire, you will only lose the premium that you paid when you made the contract; this money will be paid to the seller as his or her profit.

There are actually other investment strategies that can be implemented by either buyers or sellers in order to improve their position. For sellers, these techniques usually include stop loss orders because a seller can be vulnerable if prices rise drastically. No matter what the position, options futures have a wide variety of market orders to select.

Ispat Industries Ltd(Short Term Call)

NSE Code: ISPATIND

BSE Code: 500305
CMP: 29.30/29.35 (BSE/NSE)
Target: 35
Recommendation : Buy from a short term perspective

Recommended By : Sanju(One of the Stock Guru of Market Calls)
Industry: Metals - Ferrous

Company Info
 

Ispat Industries Limited (IIL) is one of the leading integrated steel makers and the largest private sector producer of hot rolled coils in India. Set up as Nippon Denro Ispat Limited in 1985 by founding chairman Mr M L Mittal, IIL has steadily grown into a Rs 7,000-crore company, assuming its position as flagship of the reputed Ispat Group. A corporate powerhouse with operations in iron, steel, mining, energy and infrastructure, the Group today figures among the top 20 business houses in the country. Headquartered at Mumbai, IIL employs a total of 3000 people and is the leader in the national speciality steel market. The company's core competency is the production of high quality steel, for which it employs cutting edge technologies and stringent quality standards. It produces world-class sponge iron, galvanised sheets and cold rolled coils, in addition to hot rolled coils, through its two state-of-the art integrated steel plants, located at Dolvi and Kalmeshwar in the state of Maharashtra. The sprawling 1,200 acres Dolvi complex houses the 3 million tonne per annum hot rolled coils plant, that combines the latest technologies - the Conarc process for steel making and the compact strip process (CSP) - introduced for the first time in Asia. The complex also has a 1.6 million tonne per annum sponge iron (DRI) plant, which was commissioned in 1994 as the world's largest and most efficient gas-based single mega module plant. Moreover, the Dolvi complex is home to a 2 million tonne blast furnace and also boasts a mechanised multi-functional jetty situated nearby, that facilitates the automation of raw material handling. A new 2.24 million tonnes per annum sinter plant, a 1260 tonnes per day oxygen and a new electric arc furnace have also been commissioned at IIL Dolvi. Ispat is the only steel maker in India and among a few in the world to have total flexibility in choice of steel making route, be it the conventional blast furnace route or the electric arc furnace route. Its dual technology allows Ispat the freedom to choose its raw material feed, be it pig iron, sponge iron, iron ore, scrap or any combination of various feeds. It also has total flexibility in choosing its energy source, be it electricity, coal or gas. The Kalmeshwar complex houses Ispat's 0.4 million tonnes cold rolling complex, which also includes the galvanised plain/ galvanised corrugated (GP/GC) lines and India's first colour coating mill. Technology and innovation have always been the cornerstones of IIL's quest for excellence and these state-of-the-art plants facilitate the company's mission to attain and sustain market leadership, through technological and product superiority. The company's strengths lie in its integrated process management, knowledge management and control systems. And its seamless supply chain management systems further the efficient use of raw materials, while its staff of highly skilled engineers, technicians and managers with specialised domain knowledge, ensure the choice of the relevant technology and the ability to produce international quality products at a competitive price. In line with its vision for the future, IIL is expanding its HRC capacity to 3.6 million. Moreover, it aims to complete its vertical integration process, increase the proportion of high-grade and value-added steel products in its product mix and leverage the advantage the modern design and the size of the facilities offers. With investments of over US $2 billion, IIL is the seventh largest Indian private sector company in terms of fixed assets. It aims to consolidate its market leadership in the national specialty steel market by capitalising on the proximity of its manufacturing facilities to major consumers of flat steel products in Maharashtra, while increasing its presence in international markets by using its convenient port location. In the short span of time since its inception, Ispat Industries has steadily raised the bar - in terms of its relentless pursuit of technological advancement, unwavering focus on innovation, strident emphasis on quality products and its constant initiatives aimed at ensuring customer satisfaction. As it rapidly forges ahead on all these fronts, IIL has successfully reinforced its position as market leader, while simultaneously making technological breakthroughs and setting even higher standards for itself.

Real Estate Funds in India - Awaiting a Welcome

One sector that has assumed growing importance owing to liberalization in economy in India is its real estate sector. The consequent increase in business opportunities has escalated demands for commercial and residential space. Real estate India is currently in a nascent stage with unlimited growth options. Though unorganized unlike its counterparts in developed countries, this sector is luring foreign investors in a big way.

Proactive measures taken by the government has encouraged liquidity flow into the real estate sector from the organized sectors in India as well as foreign lands. Foreign investments in India have seen a steady rise of 40%-45% per year whereas Indian financial institutions have stepped up their investments as well. The combined investment from both along with significant investments from corporate houses has pumped in billions.

Real estate investment in India lures heavy weight investors with its lucrative returns. It is estimated that a similar investment in developed countries would fetch a return of 3% to 4% whereas it fetches 12% to 15% in India.

The huge funds that are entering the real estate market were bound to cause a stir in an already booming sector. A slew of real estate funds promoted by both foreign and Indian financial institutions are competing to invest in the higher return segment. Some of the prominent companies promoting real estate funds in India are HDFC Property Fund, DHFL Venture Capital Fund, Kotak Mahindra Realty Fund, Kshitij Venture Capital Fund (A group venture of Pantaloon Retail India Ltd) and ICICI's real estate fund, India Advantage Fund. Regulated under SEBI's Venture Capital Funds, these are closed-ended schemes with an initial public offer (IPOs) contributing to a discount on NAVs (Net Asset Value).

Moreover, there is also a long list of international investors pumping in foreign funds in India like US-based Warburg Pincus, Blackstone Group, Broadstreet, Morgan Stanley (Morgan Stanley Real Estate Fund (MSREF), Columbia Endowment Fund, Hines, Tishman Speyer, Sam Zell's Equity International, JP Morgan Partners to name a few. The 10th Five-Year Plan ending in 2007 has proposed that SEBI (Securities and Exchange Board of India) would regulate the real estate mutual funds in India. These can invest in real estate in India directly or indirectly. SEBI would introduce the real estate mutual funds (REMFs) as close ended units and list in stock markets.

Globally, REMFs are also known as Real Estate Investment Trusts (REITs). The essential difference between a REIT and a mutual fund is that investments made in REIT are traded in real estate stocks and not invested in stock of companies. It provides a heavier liquidity than MFs. As per an earlier guideline by SEBI, the NAV of REMFs were required to be disclosed daily but a recent proposal of a quarterly disclosure of NAV is drawing serious speculations from the realty segment.

The REMFs or REITs once introduced in the country are expected to bring in more liquidity and heighten the organization level of the emerging real estate market in India . REMFs are to be introduced in India following their success stories in some major economies like US, the UK, Japan, South Korea, Singapore, and Hong Kong. These shall lessen the tax burden on entities by exempting corporate and capital gains tax. At least 90 per cent profits from REITs are distributed as profits through dividends.

But India shall have to wait till the end of this year to welcome REMFs as no consensus has been reached at on the valuation norms to be followed. India doesn't have an organized valuation system adding to the deadlock. Property valuation is tagged to be the deciding factor in launching REMFs as it does in other countries

Buying Fractional Stock Shares

If you are thinking that you need a large amount to make stock market trading, you need to consider your options little further. In this age of online stock trading, there are so many other options available and fractional stock is one such option that lets you make profitable stock market investment with minimum resources.

By buying fractional stock you are actually, making partial investment for high priced stocks that otherwise would have cost you exuberantly. Even if you are making huge investments, at times you can be in position when you have little resources to invest in a market. This is a situation when the fractional share can be a great way to make little but profitable investment. A great thing about the fractional stock is that you can invest as any amount to buy the stocks.

Buying stock in parts is a good idea and great way to make profit from the small investments. As you need to make little investment, you can even buy stocks that are otherwise vulnerable in nature and showing unpredictability. So, when you are not quite sure about a stock but the stock is potentially strong you can buy fractional share and try your luck.

Another interesting fact about the fractional stock is that with little amount of money, you can hold share of as many companies as you want. This is an effective way of trading, especially in an overall volatile market as you can always make up the losses if you have more options for managing the loss.

To do these quick and short-term smart investments, you have top depend on your stock broker a great deal. They need to provide you with the right research and news that hugely influence the price of the stocks. It is their timely information that can give you huge returns as you do profitable investments in the fractional stocks. There are so many options when you choose your broker for the trading in fractional stocks you need to make the choice depending on the factors that are important for your profit. You must try to find out option for the discount brokerage to make the maximum profit from your trading. You can also choose from so many stock trading companies who are offering online stock trading facilities.

As far as fractional share trading concerned, SogoInvest is offering some great solutions. With SogoInvest, you can buy any amount of fractional share. While other brokers insist on buying at least 100 shares per transaction, at this brokerage firm you can buy shares of any amount even if you are availing of the dollar cost averaging. You can deal in shares using either your joint or individual account. You can set a dollar investment schedule for any day of the week or choose a daily or monthly investment option in any stock, group of stocks or ETF's and the automated investment feature which will make the investment on the stipulated time. Along with the automated investment options, the automatic funding offers the new and seasoned investor the streamlined trading functionality.

 

Factors Affecting Share Prices

Like any other commodity, in the stock market, share prices are also dependent on so many factors. So, it is hard to point out just one or two factors that affect the price of the stocks. There are still some factors that are that directly influence the share prices.

Demand and Supply – This fundamental rule of economics holds good for the equity market as well. The price is directly affected by the trend of stock market trading. When more people are buying a certain stock, the price of that stock increases and when more people are selling he stock, the price of that particular stock falls. Now it is difficult to predict the trend of the market but your stock broker can give you fair idea of the ongoing trend of the market but be careful before you blindly follow the advice.

News – News is undoubtedly a huge factor when it comes to stock price. Positive news about a company can increase buying interest in the market while a negative press release can ruin the prospect of a stock. Having said that, you must always remember that often times, despite amazingly good news, a stock can show least movement. It is the overall performance of the company that matters more than news. It is always wise to take a wait and watch policy in a volatile market or when there is mixed reaction about a particular stock.

Market Cap – If you are trying to guess the worth of a company from the price of the stock, you are making a huge mistake. It is the market capitalization of the company, rather than the stock, that is more important when it comes to determining the worth of the company. You need to multiply the stock price with the total number of outstanding stocks in the market to get the market cap of a company and that is the worth of the company.

Earning Per Share – Earning per share is the profit that the company made per share on the last quarter. It is mandatory for every public company to publish the quarterly report that states the earning per share of the company. This is perhaps the most important factor for deciding the health of any company and they influence the buying tendency in the market resulting in the increase in the price of that particular stock. So, if you want to make a profitable investment, you need to keep watch on the quarterly reports that the companies and scrutinize the possibilities before buying stocks of particular stock.

Price/Earning Ratio - Price/Earning ratio or the P/E ratio gives you fair idea of how a company's share price compares to its earnings. If the price of the share is too much lower than the earning of the company, the stock is undervalued and it has the potential to rise in the near future. On the other hand, if the price is way too much higher than the actual earning of the company and then the stock is said to overvalued and the price can fall at any point.

Before we conclude this discussion on share prices, let me remind you that there are so many other reasons behind the fall or rise of the share price. Especially there are stock specific factors that also play its part in the price of the stock. So, it is always important that you do your research well and stock trading on the basis of your research and information that you get from your broker. To get benefit from the effective consultancy service it is therefore always better from professional stock trading companies rather than getting lured by discount brokerage advertisements that you must be coming across everyday.

Penny Stocks - Profit Or Loss?

What is a penny stock? The term penny stock refers to any stock that is traded outside one of the major exchanges. The definition of a penny stock is a low priced speculative security. The Counter Bulletin Board stocks (OTCBB) and Pink Sheets. These are the two types of penny stocks that you will encounter. With penny stocks do not think for a minute that the game has changed

When investing in penny stocks you have the opportunity to dramatically increase your profits, however, you can just as equally loose your capital quickly. To this day like in any other money making opportunity I see lots of articles out there telling people how easy it is to make thousands, in the stock market with penny stocks. Like any other opportunity, diligence, discipline, patience and understanding are required to make money.

Because of the term penny stock, you may think that the cost of investing is minimal. This is why many folks are lured to invest in penny stocks. Penny stocks also have the potential to grow very quickly. One must also understand what goes up can come down, so rapid growth can mean rapid decline.

The low price along with the lack of stability can make penny stocks a risky investment. There is also the element of fraud. Penny stocks are often hyped through spam e-mail or offshore brokers and con-artists alike. These people are able to con people due in large part by the lack of regulation that penny stocks are required to abide by.

The bottom line is this. Don't be fooled by the notion of minimal investment and rapid profits. Apply caution.

Investor Or A Gambler ?

I read an article on this topic last winter, it definitely compelled me to look at my own investment styles and interests. At the end of it I could honestly say that I don't have a stock market/gambling addiction.

Addictions seem to start out innocently enough something is done and that something brings pleasure. I for one, am not against pleasure. It's when that something becomes all encompassing, and your life becomes unmanageable that the something becomes an addiction.

I can think of nothing worse than a gambling addiction. We've all seen the drunks playing the video lottery games at the bars and shook our heads at them. Back and forth they go to get another $25 bucks worth of coins, so they can get as little as five minutes action out of the 25 bucks. Just one more roll of coins and I'll hit it big! .Then I'll go home to the wife and kids. …………….Just one more time . Entire paychecks get fed into the gambling industry everyday.

Surely this couldn't happen to investors? Well if the results from googling" investment gambling problems" is any indication, it sure could, and does. Apparently there are gamblers anonymous meetings in New York and Toronto that are comprised solely of investment professionals and do it your selfers.

According to some of the stuff I've read on the web (whats that honey? Yeah yeah just one more page then I'll come to bed) there are some traits that problem investment gamblers possess.

Like Alcoholics Anonymous' famous twenty questions-used to help self- diagnose Alcoholism, There at least 11 questions every investor should ask themselves.

1. Do I engage in high volume trading, where the action is more compelling than the objective of my trade?

2. Am I constantly preoccupied with my investments?

3. Do I need to invest more and more money or increase my leverage to feel excited?

4. Have I repeatedly tried to stop or control my market activity and failed to do so?

5. Do I become restless and irritable when I try to cut down or stop investing?

6. Do I invest to escape problems, relieve depression, or distract myself from painful emotions?

7. Do I sometimes increase my position in an investment after a loss -that is chase my losses?

8. Have I lied to conceal the extent of my involvement in the market?

9. Have I committed illegal acts, like forgery or fraud to finance my market activity?

10. Am I jeopardizing significant relationships or my job because of excessive involvement in the market?

11. Have I relied on others to bail me out when I got into desperate financial situations?

According to the material I read by clinical psychologist Paul Good , if you display 5 of these traits you may have an investment gambling problem. If you think you meet that criteria maybe a quick call to Gamblers Anonymous is in order

Remember no amount of money will buy you peace of mind.

Stock Charts Explained

When looking at stock charts what you see may not mean much to you. On these charts there are patterns. These patterns mean a lot to the investors that analyze such data to make their trades. There are many different indicators and no one indicator out weighs the other. However when taken into consideration relative to one another it begins to make sense. Recognizing these patters helps investors make successful predictions on future investments.

These patterns have names which helps identify their movement. There is a pattern called cup and handle. This particular pattern identifies a stock that starts high and then dips and comes back up again.

Another pattern is called head and shoulders. This identifies a stock that peaks then dips then peaks again higher than the previous peek. Then drops and finally peaks again. This is a pattern liked by bears.

One of the most popular patters is called the moving average. The moving average is a very strong indicator. Basically what it does is identify a stocks movement over a given period of time.

Another pattern is called the Relative Strength Index. This identifies a stock as follows. It compares the number of days a stock finishes up compared how many times it finishes down.

Another pattern is called the Money Flow Index. The money flow index goes beyond the relative strength index in that it takes into account the number of shares traded as well as the price.

Then there is the Bollinger Bands. This is a chart with a grouping of three lines. The middle line is the moving average. The other two lines which are the upper and lower lines are indicating market volatility. The more volatile the market the further apart these lines go. When there is little volatility they come close together.

The Stock Market If you want to discover your pot of gold in the stock market, then you have to know it inside out. And for all the inside-out information on the stock market explained in simple, concise, layman terms, all you need to do is click on this link: Stock Patterns. Learn How To Find stocks Which Will Double. Simple enough, huh?

Mental Mistakes in Stock Market

Stock indices have had a huge run-up recently.The price rise has been particularly sharp in the midcap segment,i.e,in stocks that have a low capital base and relatively low liquidity.It may be the time to step back a bit,book profits and look for fresh oppurtunities in attractively valued stocks that have not participated fully in the rally so far.Profit booking is the key to succesful investing in bull markets.Those investors who books profits regularly have a higher risk taking ability as they can afford to invest in stocks where others have not moved in yet.Over-owned stocks pose a higher risk of loss when the markets turn down.

There are so many common mental mistakes investors make,that often lead to losses.Some of these avoidable errors are:-

1)Overconfidence-This can lead to complacency and over exposure.It is the most common mistakes investors make when they are making profits.In equities you can never throw caution to winds.

2)Herd-like behaviour driven by a desire to be part of the crowd or an assumption that the crowd is right-If midcaps are rising people buy these stocks without even knowing anything about the companies.There are so many companies in our markets which only exists on paper,they moves with the winds or faces some unscrulpous activites,the simple gullible investors gets in at the top and that leads to a paralysis when the price suddenly falls and as soon as that happens you are stuck badly unable to take a call on the stock.

3)Excessive aversion to loss=Inability to book a loss when an investment goes wrong is the single biggest cause for losses to investors.Unless a stock has been bought on strong conviction of long term value,those who make investments for quick gains must learn to exercise stoploss.

4)Fear of uncertainity-This leads to inaction.If we book profits and the stock still moves higher,we feel bad.Therefore if a stock is moving up most investors refuse to book gains.And many a time this ultimately leads to losses.

5)Fear of making an incorrect decision and feeling stupid-This too leads to inaction.People often opt for inaction when faced with fear of making a wrong choice.However little do they realise that not acting in time too is a choice that they made unknowingly.

6)Reluctance to admit mistakes-This is another behaviourial pattern that leads to incorrect decisions.In markets,we are loathe to admit that we made a wrong decision.However admitting a mistake and taking corrective measures often saves a lot of money.

7)Following tips of self-proclaimed advisors aware of nothing-I must admit that am a 19 year old lad who has been very fortunate to witness the either side of the markets.In a bull market so many self proclaimed analyst grows,they wud just name the company backed by nothing,the scrip moves up 10% and bang he is the next big bull that we all are looking for.This is another classical behavioural patern.Now simple investors would opt for that scrip without having any confidence or conviction and as soon as the price falls down,the villain is there to catch hold of.

8)Exiting out great scrips at lower levels and buying companies which exists on paper at highs-I get a lot of mails in my mailbox daily pertaining to these point,Arunji i entered your suggested great multibagger at these levels, it came down 20% from my level, so in fear i sold out,now it has more than doubled/tripled what to do?Buying into a scrip means you are actually buying a business.Its so hard to start a business and to run it,i mean just feel it, u have to have an office,plants,machiniries,employees so many hassles.But buying a single scrip of any company means you are the owner of a great business.That company is liable to share everything with you,you being the owner of that firm.But investors hardly cares about it..Do u?

9)Failing to accurately assess their investment time horizion-Most investors make investments for the short term but when the trade turns into a loss,they stick to it claiming that it was a long term call.This could often lead to huge losses.

10)Forgetting the powerful tendency of regression to the mean-This is the most important lesson for all investors.All stock prices must ultimately revert to their long term averages.All sharp run ups on dubious companies comes to an end in an most unpleasant manner.



Regards,
ARUN
I can be reached at-arunanalyst@rediffmail.com

Mind-Boggling price rise in Indian Share Market

Mind-Boggling price rise in several scrips in last 7-10 days is mindless frenzy. Such happenings make us wonder whether this writer is an old fashioned fool who is not trying to benefit by participating in this frenzy or, those who are buying now scrips with weak financials at wonderful prices are greater fools. Only time will tell.

1)RNRL Equity is 736 crs., Rs. 5/- F.V. Share price has doubled in 3-4 days. Presently, company has hardly any business. Company is making statements about future plans. Definitely, gold mines are not waiting in its future. Games being played at this counter are beyond understanding. Sell.

2) Orissa Sponge: This counter is non-stop upper circuit since last 1 month. Company has been making heavy losses since last 5-6 quarters. It has small Sponge Iron Plant and a Cogen Plant. Company has been allotted Ore Mines but same may become operational only after 6-9 months. Gullible investors are being lured everyday as operators giving 4 digit share price target. Extremely weak fundamentals. Future is better but such high price is not warranted as if performance of next 5 years is already factored in.

3) IFCI (Rs. 105/-): It is an irony that one of the most inefficient finance company is quoting much higher than Syndicate Bank, Allahabad Bank, Andhra Bank, Vijaya Bank etc. etc. etc. As if, Equity participation of FII will work as a magical wand and fortunes of IFCI will hit the star-packed sky. Operators do not feel any shame in giving price target of Rs. 700/-.

4) Some Analysts have started recommending textile scrips although, rupee continues to appreciate. Let me remind the investors that textile revival very unlikely for next 1 year. Do not get carried away by 'Bottom-Out' stories and stay away from this Ind. for the time being.

5) Indorama Synthetics: On Equity of 131 crs., June Quarter profit is paltry 2 crs. This company has never rewarded its share holders and profit margins are always hopeless. Don't buy.

6) Reliance Energy (Rs. 1100/-): Share Price has gone up by 60% in 1 month. Perhaps, parameters of investor friendly company have changed completely. Company has not given bonus shares for so many years. A small dividend that's all. And always in hurry to collect more and more money. Big rigging operation going on as company want to raise Rs. 12,000 crs. in Dec. 07 by placing Equity at Rs. 1200/- per share. Why share price is zooming? Some inside circles say ' You people do not know real inside story. Once this story is out, share price will be Rs. 5000/-'. This is another trick to con the investing public.

7) Reliance Petroleum (Rs. 170/-): It is really shocking that analysts are putting a price target of Rs. 200/- based upon DCF for 09-10 although commercial production is yet to start.


Regards,
ARUN
I can be reached at-arunanalyst@rediffmail.com

Akar Tools

Scripscan=Akar Tools Ltd
Code=530621
Cmp=41
Target=69
Return expectation=70%
Duration=9-12 months


Introduction-Akar tools manufactures a range of hand tools under the brand name 'Akar' which include open-ended jaws, rings, combination and tubular box spanners, pliers, pipes/wheels/filters, wrenches, chisels, vices, hacksaws, bearing pullers, wrecking bars and nail pullers, carpenter tools and punches etc.

1)Over the years the company has forward integrated itself from making steel to tool manufacturing and currently has a large export market spanning Europe, US, Japan, Australia and many other countries.

2)The company has increased its hand tool capacity from 2,400 tonne per annum (tpa) to 3,600 tpa and futher they are expanding their leaf spring capacity from 3,600 tpa to 12,000 tpa:The same is scheduled to complete by last quarter of 2007-08.This will help the company to meet the growing demand in years to come.

3)To add synergy and to gain more market share the company recently has merged an associate company,ajanta auto with itself.Ajanta Auto caters to demand of the domestioc market and is engaged in the busienss of manufacturing leaf spring used in automobile sector.This is certainly going to boost the companys domestic revenue in the coming quarters.

4)Hand Tools Industry is directly related to Engineering & Automobile sector where the maximum expansion and new projects are going on.With the increased of modern manufacturing and quality control facilities akar tools is in a position to take full advantage of the increase in its product demand.

5)The company has declared a dividend of 15% and good news is that its till cum dividend.Anybody who opts to own the scrip before 21st of these month would be entitled for the dividend.Now thats something to cling upon as the dividend yield itself comes at nearly 4%.Hmm one is already coming superior to the inflation numbers just by the dividend yield.

Outsourcing Opurtunity-India's cost competitiveness,due to a high degree of engineering and manufacturing skills in segments like forgings, castings, stampings, and engineering services has resulted in India being one of the top 3 outsourcing destination for auto component/tools RFQs by global customers. Already, a growing number of OEMs are using India as an exports hub and increasing procurement volumes.With the growing brand image of akar coupled with increasing aceptance of its product there looks to be tremendous potential for the company to tap.


Risk and Concerns:Tough competition.# Margin pressure.# Frequent increase in the prices of steel and other inputs.# Uncertainties of overseas and external factors are some of the risk and concerns associated with the company

Conclusion-The robust investment capex lined up by Indian corporates across the engineering industries, will increase the demand for the company's products.With high economic activity, especially in the infrastructure and construction sectors booming, companies like Akar are definitely poised for big growth.Akar should deliver a topline of about 98crs this fiscal with 4.2crs in bottomline.At 41 rs its just quoting a valuation of about 5 times its expected fy08 earnings.Given the attractive valuation and impending robust growth,We are very positive about the company.Owning it for an year or so may just help ones portfolio to garner a return of over 70-80%.Altogether a scrip worth looking at.



Regards,
ARUN
arunanalyst@rediffmail.com

Vishal exports - The MultiBegger

In A bull market,you will come across several inventive variants of a sob story.Something just like "One my relatives made tons of money in the stock market. He had a friend who worked for a big operator. Every time he bought a stock,it doubled within a month.I was tempted to go along, and the next time he bought a stock,I bought it too. That stock doubled. Then I sold some jewellery,took an advance against my provident fund and put it all into the next stock he recommended. This time, the stock went down.I waited for a year hoping the price would recover.Finally after I'd lost 75 per cent of my capital,I sold.Oh,and my idiot relative too lost a packet!"

It's easy to lose big money in a bull market.Prices are inflated, the financials of "hot picks" are often dubious,everybody has sure firekhabar.Above all, many bull market participants tend to be inexperienced and sometimes arrogant; and they tend to get drunk on success. When prices fall, most of them lack the discipline to admit they've made mistakes and exit with dignity.

Anyway all said and done,forget it.Very recently one of the most respected panwala in our town,Vanu prasad came rushing to me with his "Sureshot Multibagger tip",It was a long time since we met and bhanu sahab was all smiling with his flamboyant baskets of orbit white teeths."Babua panoa ka dhanda khatma karke ham agaya ab marketwa mey,Apna nonua ne ek tagdi company mari hain aur woh popatwa saf saf kahediya "Vishal Exports" 3rs bhau wala lene ko jo ki "Bilwa" ka 'microsoft'se bhi tez bhagne wala hain kuch dino mey.I got awe struck,nerves got swindled,I took a long breath and bhanu bhaiya added further,"Babua tohre pas isliye ham aya taki tu bhi tohre 19 ke umar ma apne pairo se khara ho sake"Beta ham chalte hain aur "YOU NO PAN CHIBING NO CIGARETE FUKING ONLY BIRIYANI" dekh is tipwa ke sath apna confidence wa bhi agaya...Pitir pitir karke ham angrezi bhi jharne lage...ehehhehehehe,he giggled once more and went away"...I couldnt make much of his versatility though i do agree whole-heartedly that his english accent came superior to many of the MP"S of our country.

The next moment i rushed to my laptop with an unexpressable feeling,audacity was all the way as i even planned to sell my lappy for the next microsoft.So ladies&gentleman let me present you the 'considerably under researched hidden gem,Vishal Export overseas".After a bit of surfing i got the "chabi"(key) to the "Kuberdhan",the Director"s report.So let"s move on..what say?

It is one of the leading players in the EXIM business in India, in terms of "revenue and profits".The Company is engaged in the business of exports and import of Agriculture products, precious metals, chemicals, etc. The Company also got expertise in domestic and international trading of agro based commodities.Wow,great,stunning i said to myself what a great business model,i mean just consider the company buys "ALU,GOBI" and bang exported to the firangis.It exports precious metals too like?kya hain bhai...mili nehi raha hain..hmmm rehno do baki dekhte hain...minerals bhi gaya tel lene...

OOPS...Its into power generation too,Hydel power&Wind power generation,i whispered 'Bhanu bhaiya sahi tha'.So now you are getting a "Microsoft(according to our respected bhanu bhaiya),Tata power and a suzlon...a mix of 3 in vishal exports..can it get better?Choti muh aur bari bat"did u get that my fellow folks?

Now a look into the financials and the shareholding pattern.......

Oh it rewarded shareholder with a bonus too,now my confidence gets a booster again..why not such a great and dynamic business model is there for u to grab..

Sales and profits...rona agaya..pucho mat bhai...khud hi dekhlo...Mom let me have a hankie please.....

The company recently decided to sell/transfer its 'Wind farm project'...which hardly contributes anything...are ruko yaar,i recollected a scene from the bighit film,"Bunty aur Bably"..agar Taj mahal ko kiraya mey diya ja sakta hain to 'Wind farm project' bechke bhi company "Arbo" kama sakta hain...now its upto u guys to differentiate betwen the film scene and the reality..

The 3 promoters,The Mehta family sold more than 41% stake of themselves in the last 12 months...Hmm god knows whats in store of mine...I guess i am there now to replicate bhanu bhaiya in his "Purane Pan ka dhanda...

Its presently quoting at near 3rs...To opt urself for the "Chaddi pe gaddi offer" u can ride on to the helicopters of the company..

Hmm am depressed,just tuned to the song of Atif,"Hum kis gali ja rahe hain apna koi thikana nehi"....



Regards,
ARUN
arunanalyst@rediffmail.com

 

Candle Sticks - Chart Analaysis Videos

The Japanese began using technical analysis to trade rice in the 17th century. While this early version of technical analysis was different from the US version initiated by Charles Dow around 1900, many of the guiding principles were very similar:

The "what" (price action) is more important than the "why" (news, earnings, and so on).
All known information is reflected in the price.
Buyers and sellers move markets based on expectations and emotions (fear and greed).
Markets fluctuate.
The actual price may not reflect the underlying value.
According to Steve Nison, candlestick charting first appeared sometime after 1850. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata. It is likely that his original ideas were modified and refined over many years of trading eventually resulting in the system of candlestick charting that we use today.

Formation
In order to create a candlestick chart, you must have a data set that contains open, high, low and close values for each time period you want to display. The hollow or filled portion of the candlestick is called "the body" (also referred to as "the real body"). The long thin lines above and below the body represent the high/low range and are called "shadows" (also referred to as "wicks" and "tails"). The high is marked by the top of the upper shadow and the low by the bottom of the lower shadow. If the stock closes higher than its opening price, a hollow candlestick is drawn with the bottom of the body representing the opening price and the top of the body representing the closing price. If the stock closes lower than its opening price, a filled candlestick is drawn with the top of the body representing the opening price and the bottom of the body representing the closing price.

Candle Stick Video


Bulls Versus Bears
A candlestick depicts the battle between Bulls (buyers) and Bears (sellers) over a given period of time. An analogy to this battle can be made between two football teams, which we can also call the Bulls and the Bears. The bottom (intra-session low) of the candlestick represents a touchdown for the Bears and the top (intra-session high) a touchdown for the Bulls. The closer the close is to the high, the closer the Bulls are to a touchdown. The closer the close is to the low, the closer the Bears are to a touchdown. While there are many variations, I have narrowed the field to 6 types of games (or candlesticks):



1.Long white candlesticks indicate that the Bulls controlled the ball (trading) for most of the game.
2.Long black candlesticks indicate that the Bears controlled the ball (trading) for most of the game.
3.Small candlesticks indicate that neither team could move the ball and prices finished about where they started.
4.A long lower shadow indicates that the Bears controlled the ball for part of the game, but lost control by the end and the Bulls made an impressive comeback.
5.A long upper shadow indicates that the Bulls controlled the ball for part of the game, but lost control by the end and the Bears made an impressive comeback.
6.A long upper and lower shadow indicates that the both the Bears and the Bulls had their moments during the game, but neither could put the other away, resulting in a standoff.

What Candlesticks Don't Tell You
With a long white candlestick, the assumption is that prices advanced most of the session. However, based on the high/low sequence, the session could have been more volatile. The example above depicts two possible high/low sequences that would form the same candlestick. The first sequence shows two small moves and one large move: a small decline off the open to form the low, a sharp advance to form the high, and a small decline to form the close. The second sequence shows three rather sharp moves: a sharp advance off the open to form the high, a sharp decline to form the low, and a sharp advance to form the close. The first sequence portrays strong, sustained buying pressure, and would be considered more bullish. The second sequence reflects more volatility and some selling pressure. These are just two examples, and there are hundreds of potential combinations that could result in the same candlestick. Candlesticks still offer valuable information on the relative positions of the open, high, low and close. However, the trading activity that forms a particular candlestick can vary.

FAQ's For Sabero Organics

Why should I buy when the volumes traded are so low?

Sanju"S Reply: "It has formed a base over 1 years, bottom over. Yes volumes are low ,but if u want to buy when volumes r high u can buy it @ 20 levels when the crowd runs aft it, or can b a smart investor and buy now"

(Question was asked when the scrip was trading @ 13 level, Now its trading at 18 levels with huge volumes)

Whats the next 100% upside stock to look upto?

Sanju's reply: "second one am givin inside a month, sabero can give u more than 100% the target i mentioned is just the first target ,so i would say park ur long term money here and u wont get it at these levels later"

(Target has been revised as mentioned to 40. Stay tuned to this blog and fan club for future calls and updates)

Whats it the time frame for 100% returns?

Sanju's reply: "approx 2 months this stock can give u above 100% returns so guys accumulate at this level"

(Stock has already given close to 50% returns in under a month)

Whats the time frame for more than 100% returns?

Sanju's reply: "ashik i am expecting more than 100% retunrs here in this stock thats what y research says , it wil give u more than 100% exact time frame v difficult to predict "

Can we buy at these 18 levels?

Sanju's reply: "i did mentio n some time back that 18 is comin as new buyin levels so around here we can sure buy"

Should i sell sabero at this prices in case it woud be available at lower prices for purchase?

Sanju's reply: "It is a very dicy question cause no ne in the world wil b able to answer that correctly. If u sell and the price comes down, then wow ull look cool but its a strong stock. So if it doesnt u'll miss the upside. I generally do this cause timing the market is something very difficult and only few have succeeded in that. When u r sure about targets as I am, u shold buy and then sit tight and not get moved my market movements, target on where ever the stock goes in the coming days."

Is the policy still in favour of fertilizer sector?

Sanju's reply: "yes ,it is ,it wil b the sector for like next one year"

Updates on Fertilizer Policy

12th September 2007

Sanju: "Guys fertilizer policy is gonna be out in some days so it will add up to the stock going up. Pick sabero up before that. Those waho havent brought can still buy and those who want to add on can do that too."

14th September 2007 (Taken from Money Control Website)

The Oil Secretary said the subsidy for fertilisers will come down by Rs 3,000-4,000 crore p.a. He ascertained that the government has a right to regulate gas distribution.

15th September 2007

Sanju: "New urea policy will be announced soon if u were watching cnbc, they said they r expecting it to be rolled out in 30 days, chairman of rcf heads the committe with our finance minister plus govt is giving great importance to agriculture as without it we cant get into double digit growth numbers, Sabero also makes chmemicals, which is also the flavour currently, all chemical companies are going up."

Buy Saberro Organics Gujarat Ltd

Sabero Organics Gujarat Ltd
NSE Code: SABERORGAN
BSE Code: 524446
CMP: 16.85
Initial Target: 24 (Target Suggested on 20th August 2007)
Revised Target: 40 (Target Revised on 11th September 2007) in approx 2 - 4 months
Current Recommendation : BUY

Scrip Performance:
20th August 2007 CMP 12
11th September 2007 CMP 18

17th September 2007: CMP 16.10

 

 

Company Background:
 

Sabero Organics Gujarat Limited ( SABERO) was established in the year 1991 to manufacture specialty chemicals and intermediates for the crop protection business. Sabero then forward integrated in 1997 into manufacturing crop protection chemicals. In order to have a diversified portfolio, Sabero chose one or two key products in each sector such as Acephate and Monocrotophos (Insecticides), Glyphosate (Herbicide) and Mancozeb (Fungicide). As the company was already manufacturing some of the intermediates for these products, it excelled in the technology for manufacturing organophosphorus and dithiocarbamate products.
Apart from sales of unbranded technical and formulations, the Company also established in 1997 its business of branded agrochemical formulations. It launched a full range of products, which included in addition to its own technical based product, other products such as Ethephon, Cypermethrin, Chlorpyriphos , Dichlorvos, Profenofos, Triazophos , Propiconazole, Hexconazole etc.
The company went public in the year 1994 through an IPO (Initial Public Offer), which was followed up by a Rights Issue in 1997, and is today a listed Company on the Bombay Stock Exchange and National Stock Exchange in India.
Sabero currently employs over 400 people with Competent managerial, technical, supervisory and administrative skills come together as one team: one force that transcend designations. Driven by a common commitment, we strive for excellence in its smallest details.
To keep motivational levels high and capabilities razor sharp, Sabero conducts regular seminars and refresher courses, both in-house and at various training schools. We are therefore, constantly in touch with latest developments around the world.

Sabero has made a substantial investment in data generation on products at various GLP laboratories both in India and Europe and has registered its products in various countries. Comprehensive registrations dossiers are available for all the company's core products. The Company currently has distributors in various countries and exports its products to over 50 countries covering Australia, Asia, Africa, Europe, Middle East and the Americas. In order to facilitate the registration of its products and provide better customer service, the company has recently set up subsidiaries in Australia, Argentina, Netherlands and Brazil.
Sabero has an extensive manufacturing facility with state-of-the-art sophisticated equipments and PLC based process control with an asset base of over USD 25 million. The Company is a signatory to the Responsible Care Program and has extensive facilities for treatment of all wastes to meet statutory environmental standards.
Sabero has a state-of-the-art R & D center and pilot plant with sophisticated analytical equipment and well qualified dedicated research fellows and scientists for the continuous improvement of existing products and the development of new ones. The R & D facilities of the Company are approved by the Indian Regulatory agency called CSIR - Council of Scientific and Industrial Research. All the existing products manufactured by the Company have been developed by Sabero in its in-house R & D. Further developmental work is being done on new generics, which will be shortly going off patent, including insecticides, herbicides, fungicides and intermediates so that we are in a position to be a primary generic supplier. Sabero has succeeded due to a combination of factors. A winning formula that we call "The right chemistry at work".

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