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'Indian pharmaceutical sector is exploding'Mumbai, June 3, 2003: 'Matrix has been the wonder stock of the last six months and most of the mid cap companies in this sector are doing well. Investors should watch out for these companies,' says Ramesh Shrichand Damani.namrata : hey! where's Mr Damani? Ramesh S Damani : Hello everyone thanks for joining. Let's start. tigershark : will yu buy hll at if yu had a lakh of rupees simply lying around in some bond fundand considering the fact that i already own most of the stocks discussed here. Ramesh S Damani : Lots of stocks are paying handsome dividends. In the next12 months you will get two dividends. So look for yield. BASANTMAHESHWARI : The NASSCOM report is bullish again on the ITES but things are not moving as desired Mphasis HTMT,Eserve etc are still not in the overdrive mode as they should be Your take. Ramesh S Damani : Market is associating them with tech and clubbing them together. It will take some time to treat them separately. mayurdamani : Sir, can you tell me something about Logix Microsystems and D-Link India. Can we purchase at the present rates? Ramesh S Damani : I own D-link and they are doing well. As far as Logix is concerned, I am still studying it. tigershark : 10%tcson imfl is a retrograde step in the deregulation of the liqour industry your opinion on this development and how will it affect the bottomline of mcdow and co Ramesh S Damani : They tax cigarettes and liquor till the nth degree. It is unfortunate. BASANTMAHESHWARI : On the charts the Bank stocks opened with an exhaustion gap. This is extremely bearish. Any rally should be used as an oppurtunity to sell only.This is another PSU type story where one would have to see more as to what the Banking Secretary says rather then the Bank Chairman. Disgusting SEBI should look at the the oinsider trading angle.WHat do you say? Ramesh S Damani : It is best left to quick traders and not investors. Among the bank stocks I still like SBI. I own it. SSMehra : Damaniji, You have recommended buying Apollo Hospitals ? What kind of price target do you foresee for next one year ? Ramesh S Damani : It is a good investment. No particular price target. gopal : how is Man industries looking in short term Ramesh S Damani : The company is doing well in the current year on the back of buoyant orders. sudipto : in tha last chat u told that u bought Gail? Why didn't u bought ONGC or IOC or HPCL ? Ramesh S Damani : I own Gail and HPCL. Market cap of ONGC is Rs 75,000 cr. It is too rich for me. IOC is expensive on a market cap basis. mayurdamani : Sir, can we still buy Suven Pharma at this prices? Ramesh S Damani : I would wait. I own it. alagu : what about calcctta electric supply Ramesh S Damani : It is a dark horse. Buy around Rs 20. Currently it is Rs 25. I own a small amount. StockInvestor : Do you have an EPS estimate (even an approximate one would do) for E-serve for the next fiscal year ? Ramesh S Damani : They should earn Rs 40 cr. That is my initial estimate. However let' s hope the rupee does not does not appreciate versus the US dollar and no unnecessary service taxes are added. tigershark : what was your ratinale to buy gailthey are not bidding for cairns gas fields Ramesh S Damani : Cheap, stable business and good yield. Market likes this in a stock. BASANTMAHESHWARI : Did you see Mcdowell on the Japanese monthly candlestick pattern it showed a MONTHLY STAR. I heard that Sunil Alagh of Britannia is getting into the UB group. This could be a big trigger. Are we ancticipating a rise in the net profit of the Co. in 04 or we buy it just as a very small market cap co(purely as a valuation play) and wait for the herbetson issue to get solved.Last year it earned 20 odd crores. I feel that in one of the previous chats you mentioned a NP figure of 100 crores in 04. I Could be wrong also Ramesh S Damani : Rs 100 cr is what they should earn. Sunil is likely to join UB, I heard also. McDowell will still take time. vikas : is there any company which excites you in textiles and indian pharma Ramesh S Damani : I have started to trade in Shri Rajasthan Syntex. It is around Rs 7.50-8.00. Textile scenario is changing and these stocks are cheap. Good for patient investors. jay : sir what do u think abt insurance stocks?there r no direct plays rite now apart frm max in life but im lookin at a couple of indirect non life plays bcoz i think this sector is the future Ramesh S Damani : Take a look at Birla Global, Indian Rayon and Sundaram Finance. I own them. BASANTMAHESHWARI : I need your answer on this one as well. Trent has Rs 120 in cash on its balance sheet gives out Rs 5 as dividend is the best listed stock in the retailing sector. McKinsey says that the Indian retail market is to grow many times in the next few of years. Organised retailing is only 3% in India whereas it is 15% in China and in the mid thirties in the south east Asian countries. I have a decent position in Opanatloon and Trent. The buyont textile sector is an added bonus.Your take Ramesh S Damani : Making money in retailing like autos and airlines is a tough business. I am not inspired by the Trent model i.e selling house products etc. However, the stock as you mention is cheap. I just lack the vision about its future. Pantaloon management is not tested yet. mayurdamani : Sir, are you studying all these Hyderabad companies like Matrix Labs, Divis, Granuels India and now people are talking about Natco Pharma as the next Matrix Labs. What do you suggest sir? Ramesh S Damani : Matrix has been the wonder stock of the last six months. Indian pharma is exploding and the mid cap companies are doing well. Investors should watch out for these companies. I don't know much about Natco pharma. Ahmedabadguy : , Mr. damani as worry of monsoon has started ticking in..Do you see it brings an opportunity to buy in macmilan,macdowell etc.. Ramesh S Damani : These are good stocks to buy. shreebagri : Ramesh what is your view on Maruti IPO. What price do u expect from the stock. Ramesh S Damani : It is expensive in PE terms. However, I expect a healthy demand and price appreciation on listing. amitsbhatia : sir gail results are on 20 th june with a EPS of around 19 rupees it should declare 1/3 as divdend ? will it declares around 6 Rs. dividend ?? Ramesh S Damani : I think they have already declared the final dividend. manish : the auto ancillari sector is also going to be a big story there was a news item in eco today that delphi is outsourcing $140m do you think its is an upcoming sector Ramesh S Damani : I am not so sure about it. The operation seems more in companies like Bharat Forge and Sundaram. I own both. Ahmedabadguy : Sir do you own Cummins as this MNC has a story of Indian eng. company having global manufacturing base?? Ramesh S Damani : No I do not. But they have declared a good dividend and seems to have turned the corner. vikas : I can not locate Shri Rajasthan Syntex. Is it in BSE only Ramesh S Damani : Yes, I think so in the B2 category. StockInvestor : I disagree on your views on retailing. If Wal-mart, the biggest retailer in the US, can grow at 15 to 20% bottom line, why can't the Indian companies just duplicate the model of these successful companies. Ramesh S Damani : It's the big exception. Look at Marks and Spencers, Toys RUS or any other chains. They have disappointed. Wal Mart is more of a tech company. Also my problem is not with retailing at these valuations but the Trent Business model. sunil : Mr. DamaniDo you think it is a wise decision to invest in hindustan motors Ramesh S Damani : I keep hearing about a turn around but I have not followed it. mayurdamani : Sir, have you heard about a company called Amforge Industries. People are telling that it is the next Bharat Forge? Ramesh S Damani : That is stretching the point but they should have a good year. BASANTMAHESHWARI : Among the auto ancillary stocks have you looked at MICO. Co is valued at a high price but is to report an EPS of 500 in the CY The business is on a turnaround path and the exports have helped too. For the last year ended 2002 exports perked up by almost 30 percent. The operating margins were the highest since last 8 quarters which helped the company's bottomline to surge.Mainly Co's has a German parent and the Indian auto ancillary outsourcing story will be further ballooned as billings would be in Euro(the only gaining currency). Also have you looked at SKF (Sweedish parent)I bought some quantity at RS 53. Give us a couple of good picks and your views on SKF. Ramesh S Damani : Mico is an excellent story. I have no new idea other than the odd textile play. That also is in the accumulation stage. puntit : DAMANI BHAI, U HAD SAID IN UR EARLIER CHATS THAT EMPLOYEE SATISFACTIONIN A COMPANY IS ONE OF CORE REASONS FOR A STOCK DOING WELL?DOU FEEL THAT BEL, A PSU THAT TOO A TECHNICAL PSU WHICH HAS SHOWN TREMONDOUS RESULTSIN THE STOCK MARKET HAS BEEN ABLE TO ACHEVE EMPLOYEE SATISFACTION. Ramesh S Damani : I think they have satisfied the employees. Remember for the most part PSU employees want stability not high growth, the young and the restless join tech and FMCG. Ahmedabadguy : Sir with IDBI and Tamilnadu govt. having 35% stake each Does Taminlnadu Paper looks good on your radar screen?? Ramesh S Damani : It does but I have not bought it. shreebagri : Ramesh your view on Macmilan.HTMT, Tata Honeywell,Mc. dowell,Max,Goldian,Blue Star ""Infotech, E-serve, TVSE,Tata Infotech - all buy or wait for some - i am going to put big money this time in these stocks Ramesh S Damani : I am not sure about HTMT and Infotech. Be patient with TVSE. The rest look good to me at current rates. shreebagri : What stocks u will be recommending to investors seeing the present market conditions and u have conviction in buying them - out of your entire basket of stockes Ramesh S Damani : Most of the stocks in my portfolio like Mcmillan, Tata Honeywell, e-Serve, McDowell. Rajani : How to start in share market? What kind of shares i should buy? What are the key factors i should see before buying shares?? Ramesh S Damani : Find a broker like HDFC Securites or ICICI and start reading Peter Lynch's 'One up on Wall Street'. That will give you the basic idea. bhakte : what about crompton greaves sir result is exellent Ramesh S Damani : Keep an eye on it. ashish : what is ur recommendation on AFTEK Infosys and Dredging Corporation Ramesh S Damani : Dredging is cheap and should declare a dividend. Rajani : Plese sir guide me..i dont have access to HdFc Securities or Icici. Ramesh S Damani : Please find them on the net or walk into one of their branches and ask them. Rajani : pbuffet says, kindly give your mail id...i want to be in touch with u. Thanks for the suggestion... Ramesh S Damani : This is the best place to reach me. mayurdamani : Sir, people say that do not buy stocks like Morepen Labs and HFCL, but they have appreciated very much from their lows? What do you think so sir? Ramesh S Damani : Avoid them. Shabana : On the textile sector, please suggest one or two names where you see a good value pick?? Ramesh S Damani : Take a look at Super Spinning at around Rs 85-90. Shri Rajasthan Syntex around Rs 7. Be patient though. Mahavir Spg Mills is good if you want a high quality company. ganesh : Sir,Is it good to hold Kotak Mahindra and SBI.Can i hold it or sell it.How is the prospect of Reliance Ind and Reliance Capital Ramesh S Damani : I like SBI the best. I own it. ashish : is International Travel House Worth Buying at this level Ramesh S Damani : Most of profit was due to other income. Nothing exciting about it. Thanks all for joining. See you next week. Bye |