Sabero Organics Gujarat Ltd - Decent Pick

CMP: 68

Sabero Organics Gujarat Ltd. (SABERO) manufactures specialty chemicals and intermediates for the crop protection business. The Company, apart from sales of unbranded technical and formulations, has its business of branded agrochemical formulations. Sabero has distributors in various countries and exports its products to several countries as well.

Sabero is a decent pick in small cap space. NPM is a little low, but has been picking up. If that trend continues, it will do wonders. Liabilities are rightly balanced at this point (Not too high, not too low). P/E of 7 is healthy. It does look a little weak on the charts and we expect support to come in at 60 - 65 levels. Its not a bad idea to buy in bits spaced with time. Remember the thumb rule, no more than 20% exposure on a particular stock.