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  POLITICS & GOVERNANCE[2001 onwards] POLITICS & GOVERNANCE[1996-2000] MOVIESMUSICSPORTSBUSINESSNATIONAL SECURITYINTERNATIONAL AFFAIRSINFOTECHSOCIETYSTYLELIVETRAVELSCIENCEELECTION'99ELECTIONS '98 | ||
'Appreciating rupee to hit tech firms'Mumbai, May 20, 2003: 'Most of them do business with USA except say McMillan, which is euro centric. Tata Honeywell imports a lot. So it should benefit,' says Ramesh Shrichand Damani.JEDHM : Damaniji,What is your frank opinion on Maruti's IPO. I have keen interest in investing in Maruti IPO, however the higher PE ratio is my point of cencern ? I will appreciate your expert comments.Regards, JEDHM Ramesh S Damani : Hello everyone. Thanks for joining. Let's start. I have not read the Maruti prospectus yet. I think it will meet with good demand. Let's wait before we analyse it. somanee : what is your opinion about macmillan at this rate Ramesh S Damani : I am bullish about it. They could do Rs 18-20 this year. Meaning a forward PE of 6. The ITES business has come back on track. baracuda : to what extent will the appreciating rupee affect esrve and tata honeyand how much from the bottomline should we prepared to shave off Ramesh S Damani : It is a cause for concern. Tata Honeywell imports a lot. So it should benefit by better rupee rates. Also margins are higher in ITES. e-Serve margins are lower and the appreciating rupee is not the best of news for them. subbu : infosys is under tremendous rate pressure.do you see a upside tohis share.shd i hold on or shd I sell or buy a few more Ramesh S Damani : I own it. But increasingly you are moving uphill. I also own Tata Honeywell and e-Serve I recommended in the earlier question. mayurdamani : Any news on Opto Circuits. Today, it was very active and with some handsome gains? Can i buy at the current rates? Ramesh S Damani : The company is doing well and it should give a dividend of Rs 3 plus. baracuda : himmatsiede has always failed to deliver although it holds lot of promise do yu feel it will do well and is it cheap to buy at current ratesconsidering the interest in indian textiles by multinational cos Ramesh S Damani : You can buy the stock on yield. Growth will be lackluster. I own it. mayurdamani : Sir, what do you think about Logix Microsystems and Mascot Systems? Can enter at these levels? Ramesh S Damani : I am studying Logix. Not bullish on Mascot. baracuda : is blue star info a bpo cos and is it a sister concern of blue stardoes blue star face pricing pressure and the fear of the app rupee Ramesh S Damani : Services and IT will face pressure from appreciating rupee. Blue Star has given a guidance of 20% plus. I own it. ShilpiKapoor : Sir, The proposed rights offer of IDBI BANK will improve the CAR. This should result in the re-rating of this excellent bank with low NPAs ? Your views please Ramesh S Damani : Unfortunately IDBI may interfere in its day-to-day management. That is a risk. SSMehra : Hello Damaniji, Any idea on the FY03 earnings of Apollo Hospitals? The scrip has not actively participated in the mid-cap rally so far ? What kind of PAT are you expecting from the co. in FY03 and FY04?Thanks for your comments. Ramesh S Damani : The company's earnings are growing slowly. I don't have an exact estimate. However, I believe it is good value to hold at these prices. I own it. ITES business is kicking off. StockInvestor : Isn't this concern about appreciating Re all hype ? I mean most currencies from Canada/European countries/Australia has appreciated by 15% or more against the Re. So why would a 2 or 3% drop be of concern for the IT/ITES companies, unless ofcourse they do 100% business with the US Ramesh S Damani : Most of them do business with USA except say McMillan which is euro centric. baracuda : so if the rupee is going to apreciate some more should we get out of eserveas yu know we have not bought it that cheapand we could book some gain please answer this q Ramesh S Damani : I wish we had an easy answer to this question. Ultimately management will have to squeeze costs and get a rate raise. That might be difficult in the short run. I am currently planning to hold on. The rupee may not appreciate greatly from these levels for one year. mayurdamani : Sir, what about Ind swift ltd, suven pharma, vimta labs, orchid chemicals? Which is an turnaround story? Ramesh S Damani : Suven is the stock to watch in this basket. I own it. StockInvestor : Nasdaq 100 being a tech heavy Index, I was looking more in the line of investing in some kind of Tech heavy index in Index. I wonder what it would be ? Ramesh S Damani : We don't have a trade on a teck index. However Nifty is overweight with tech. (Wipro and Infosys) SSMehra : Rameshji, Considering the future prospects of economic growth..do you see stocks like Blue Dart doing well ? Ramesh S Damani : Unfortunately over the last few years growth has been anemic. We need GDP to grow at 8%-10% for this company to boom. Long term trends for Blue Staris good. mayurdamani : Sir, have you heard about compudyne Winfosystems? Once it was quoting around 5o plus levels and now around 14. Can i buy at the current levels? Ramesh S Damani : Yes I have. I own a small amount. However, the company seems to be off the radar. They do film animation and effects. ashish : Damaniji what do you think of arvind mills Ramesh S Damani : A turn around but I am not comfortable with its management jjpandit : Sir at curent market midcap raly we have seen last week , i remeber one of chat with you you mentioned one stock name man ind (india) i read some where it has got 359 cr from gail and anohter expect from refinary is worth to look at this industries your expert commnets require.thanks Ramesh S Damani : It has done well. It earned Rs 7. It could earn over Rs 12 this year. So it is cheap. Hold on to it. roi : what do think of economic times publishing speculative news item on basis which investors take wrong decesion Ramesh S Damani : It has me worried too. Investors should remember the principle of 'caveat emptor' or buyer beware vikas1 : It seems IT and ITES are off the radar, why dont you research in some other sector which are the theme these days Ramesh S Damani : I do. I bought some Gillette and Birla 3M. However, market seems to be favouring PSU banks. A sector I don't like. banthia : sir do you like kale consultants. the company reported good numbers for the current year. what about videocon international Ramesh S Damani : They probably need to raise money. Growth is still poor and they are losing to companies like WANS and TCS. harshad : sir i have esops in infy ... and though i have full trust in it ... my frnds suggest to get rid of it ... and what abt PSU banks Ramesh S Damani : Investment is about conviction. If you believe in it hold on to it. StockInvestor : I was looking at your projected revenue growth projection for E-serve. with a 315 crore projected revenue, the company is only growing at 23% for this fiscal. Shouldn't E-serve be growing a lot more than a paltry 20+ top line revenue growth? Ramesh S Damani : The BPO business scales up slowly. But it is like an annuity. The management keeps delivering but we can't project more than 20%-25% at this time. vikas1 : Your views on Man Ind at 30 and UB Holding at current levels Ramesh S Damani : Both look good. According to Asian Age the money from Scottish and Newcastle has come in. I own UB. mayurdamani : Sir, as the us dollar is going down and the euro dollar the opposite, is not it time to concentrate on companies like Mastek and some others which has majority of their business from europe? Can you suggest some stocks which will benefit with the rising euro? Ramesh S Damani : The problem with Mastek is that management has not delivered. McMillan should get a boost from the euro. Jai : would you give more weightage to Fundamental analysis or Technical in the medium term?? Ramesh S Damani : Fundamental. Technical is just to get a price check. inv : Do you still think the index is capped and the broad based rally still has some time. Ramesh S Damani : It looks like that. jjpandit : sir i make some money from m&m since this yr i bought it @85 rs i make partial profit from it do i invest this money in mcdowell or macmillan please advice me. Ramesh S Damani : For safety Mcmillan and for risk/reward over 2-3 years it is McDowell. Vimal : Tata Telecom's results are due today. How do you rate the stock considering that they are market leaders in call centre solutions? Ramesh S Damani : Hardware business is not very valuable per se. They seem to be doing a decent job though. Jai : Would u say monsoons are the nearest triggers +ve or -ve for the markets?? Ramesh S Damani : That would be fair. And the appreciating rupee at this point would be bad for the tech companies. srikanth : Hello Mr Damani,Is it right time to invest Alok Industries (Sops given to textile industry by govt.) and MRPL, which is going to be a good turn-a-round company. Ramesh S Damani : I am not following it, sorry. vikas1 : There si rumour that SBI soon will hit 500 mark. How do u like Tata Telcom Ramesh S Damani : I own SBI and I am optimistic about it. gopinath : sir,i hold hikal,macmillan,crisil,foseco,monsanto,unichem.which share ishould sell or buy Ramesh S Damani : I don't know much about the current working of Foseco. The rest are good to hold. vikas1 : Did u ever think to get rid off IT/ITES sector as growth is concern , Rs/dollar is another Ramesh S Damani : Rupee versus dollar is a bigger concern. Growth will come I am optimistic. Don't look at it on a quarterly baisis. View it for over 2-3 years time. srikanth : Hello Mr Damani,What is your view on Kale consultants ?. today they have announced their tie-up with Polaris. Ramesh S Damani : Have not read the details. Will tell you next week. silverinvestor : sir,ggod afternoon..a long time. my Q is..Mr Raghvendra (MD Orchid Chem)has projected a growth of 40 & 50 topline & bottomline resp. which translates into a growth of 168% in current yr. youthink it is achievable? Ramesh S Damani : I don't follow the company that closely to give an educated view. inv : everybody talks about appriciating ruppee, Do we assume that these software companies while quoting to the customer do not take care of currency flucutations. Ramesh S Damani : Contracts may run for 1-3 years and the companies are now squeezing vendors. They don't have the pricing power they had in 1999, 2000. banthia : sir what about bluedart exp. it is a cheap stock in terms of market cap. also it is a leader in its field. your views for the long term Ramesh S Damani : Looks good for the long term. Satish : What will the most interesting sector you would chose to short and long Ramesh S Damani : Large cap tech seem to be struggling. Liquor seems the best from the risk/reward point. I have to leave early today, thanks for joining. See you next week. bye. MALIK : SIR, PLEASE TELL WEHTER TO HOLD THE INVESTMENT MADE IN TATA INFOTECH OR TO SELL THE SHARE Ramesh S Damani : I would hold on. I own it. |