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'ITES can be high margin'Mumbai, October 28, 2003: 'ITES is not high value but net margins for 9 months is 48%. That is fabulous,' says Ramesh Shrichand Damani.Raghunath Reddy : I wanted to know about Hindustan Zinc and Syndicate Bank Ramesh S Damani : Zinc has turned around and I would expect prices to remain firm for commodities. As far as Syndicate Bank is concerned I would be trading. Aparna K : Mr. Damani, is GE Shipping a good investment for next 6 months? The company has paid good dividend and I wish to buy more. Earlier I bought at Rs. 62 Ramesh S Damani : Shipping is going through a boom time. GE is well placed to benefit from it. Aparna K : Is TV18 doing well? How is the future outlook. Technical analysts say it is looking very strong on the charts. Ramesh S Damani : They are doing well in a bull market. And they will continue to do well when CAS would be implemented. smita : as we have witnessed there is always aboom in one sector, which sector u consider to be next? Ramesh S Damani : Leaders seem to be the mid cap pharma and steel shares. BASANTMAHESHWARI : McMillan results were bad.I sold off at 224 and will take a look after next quarter results. How are you placed.The Co. employs around 950 odd people in the BPO segment and nets in only about 11 crorefor the qtr .Is the figure suggesting that the Co. does not do high end jobs and only routine typesetting work.Doe we give the company another chance (next qtr results)or get in at about 200 - 205 levels. Ramesh S Damani : ITES is not high value but can be high margin. ITES net margins for 9 months is 48%. That is fabulous. rajesh : Sir, are you still bullish on IT enabled stocks inspite of rupee appreciation ? What % you recemmened in these stocks out of equity. Ramesh S Damani : Rupee appreciation represents a problem. However, growth should be able to help them. Aparna K : PLEASE SUGGEST SOME PSU STOCKS WORTH BUYING NOW. MOST OF THEM HAVE FALLEN A LOT, LIKE CONCOR AND THE OIL COMPANIES Ramesh S Damani : Concor is good. Also take a look at Neyveli. I own it. rks2 : Some people say that PSL holding is very script and having good future but the other group of people say that its products are bulky and not good for export. I request you to give your view on this.Further should I hold this or exit. Ramesh S Damani : They are doing well currently from market grape vine. I don't own the script so have no current view. BASANTMAHESHWARI : You were talking about Colgate on Taking Stock. This used to be a favourtite of Chandrakant Sampat a vetren at Bse. Any targets or plans that are likely to be unveiled. Co. should benefit from the closure of the Nepal Plant but that is a drop in the bucket. Ramesh S Damani : I am trying to reduce my exposure to dollar assets and am buying rupee assets. Colgate is an example of that. sanujkadavil : south india bank rise over 10% yesterday.one news paper in kerala (deshabhimani -kerala)quote that icici looking to sell their holding to any strategic player and possibly the buyer make a open offer ..what the paper says boyh federal and south bank losing from malayali hands.but as a investor point of view its good.but a customer any takeover will impact close down of some of the rural branches..some employess are already concern over this Ramesh S Damani : I have no news on that. However, South India Bank is a cheap stock. I own it. BASANTMAHESHWARI : Heard you are recommending Godrej Indust(M CAP - 250 crs). Is it because of the retail focus. If that is the case why not concentrate on Trent (MCAP - 300 crs and Rs 160 crs of that in liquid cash on the B/S) Pantaloon at Mcap of Rs 450 crs the emerging leader. Are you aware that RJ holds 2% of equity in Pantaloon? Ramesh S Damani : No. There's great concentration of business. Also they have a hidden ITES play. Management is good. BASANTMAHESHWARI : I bought TV - 18 at 146.. It has 90 percent in the broadcasting company and a 15 year franchise for CNBC brand.The content has inproved and programming sense matured. It trades at a FY 04 PE of 16.The ad revenues are to rise from Rs.27crs currently to about Rs.45crs by FY06. subscription revenues are estimated to rise from Rs.7crs to Rs.25 crs by FY06 TV-18 is estimated to receive Rs.54crs in pay revenues from Zee Telefilms on account of it being part of Zee''s bouquet.CAS and DTH rollouts would be major news as the channel has a strong and a loyal focused audience. The mcap at Rs 175 odd crs for a broadcasting Co. with a niche model is cheap. Have you analysed the stock. Ramesh S Damani : I have and your logic is correct. They have a loyal audience and they will monetise it over time. rajesh : Sir,you are trying to reduce your exposure to dollar assets, which stocks you have sold Ramesh S Damani : Sold some Geoemetric and India Hotels. maddy : sir, you didn't recommend Godrej Industries in taking stock . is there any other stock which we can buy in this correction . small cap Ramesh S Damani : I am bullish on Godrej Industries. rakshesh : Chennai Gay,damaniji IS the Warren buffet of India Ramesh S Damani : Thanks for the compliment however, we have only one Bradman and one Buffett. We can follow his philosophy but he remains untouchable. ChennaiGuy : If Warren Buffett thinks of Investing in Idia ( and he is supposed to ) which 5 stocks would he perefr can u throw light on it ( He prefers to wait for 10 years ) Ramesh S Damani : I think he would be attracted to some of the following1) Asian Paints2) McDowell 3) HDFC Bank, and 4) GAIL are some example. sachin : Can I buy Morgan Stanley Fund at 13.20 and Arvind Remedies at 3 and Welspun Gujarat at 40 ? Ramesh S Damani : Morgan Stanley Welspun is a good trading bet. ChennaiGuy : Damani sir why dont u have ur own web site were we can get answers for paid subscriptions Ramesh S Damani : I have no site. This is free. simplify : Mr Damani - mortgage exposure in India very low compared to developed/developing countries. This shd mean sustained growth potential for housing finance companies & banks . Specially banks with rural infrastructure which others will find hard to create... Any views/picks ? Ramesh S Damani : Your logic is correct. In that space look at HDFC, Sundaram Finance etc. They will all prosper in this environment. I own both of the above shares. BASANTM : McKinsey says that the Indian GDP currently at 5.5 could grow up to 10% through increase in regulation governing product markets(2.3%) property reforms (1.3%) privatization (0.7%)and others (.3%).Is the stock market being too critical about the privatization programme after all product market reform and property reforms are more important and critical. Are all of us too loath and greedy to get cheap PSU share Ramesh S Damani : They are important. We are at a good time for all these reforms. Aparna K : What will be impact of an appreciating rupee on the fortunes of BEL? Do you anticipate good growth and is the P/E reasonable in this bull market? Ramesh S Damani : Q2 results were good. I expect them to have a good year. vikas : Which one will u choose in order of prefernce : United Breweries , Godrej Ind and Sundaram Fin Ramesh S Damani : They cannot be compared. The only common thing is that the three have low risks at current price. Sundaram is a blue chip. Godrej is turning around. UB is a low risk, high return stock. simplify : Mr Damani - Himatsingka again had good quarterly results..2 in a row now... Any views on this being sustained turnaround (in terms of company being able to show growth) ? Ramesh S Damani : They did however, the growth has been slow and not spectacular. I think over time they will do well. I own it. jg : what is the future of SCI and Kochi Refinery Ramesh S Damani : Both will do well in the current year. Kochi should pay a dividend of Rs 10 again this year. sanujkadavil : sirwhat is ur view on vardhaman polytex..45 rs stock..market cap of only 50crores of a sales of 200cr.they are paying 4rs dividend in last 4 years .then why the stock languising at 40 levels..also ur view on vardhaman acrylics Ramesh S Damani : I don't follow this stock. gary : should we small investor wait or do purchasing at current market Ramesh S Damani : I would be investing. simplify : You mentioned Colgate. If you take a long term view, I don't believe that growing shd be a problem for them (large population in India still does not use toothpaste). It now trades at a historical low P/E too... Similarly Nestle & HLL. If you take a long term view, these shd be core holdings too ? Ramesh S Damani : That is the logic. Also no 100% subsidary. rajan : simplify, small regional player eating mkt share of FMCgs...paste like babool, anchor etc giving colgate a run for its money. Ramesh S Damani : That is in the price. vikas : AGAIN : MACMILLAN : R u adding after recent fall or result are worrying u Ramesh S Damani : Worrying is my middle name. I have not really done much after the results. Just traded in it a little bit. vikas : Have u sold or partly sold E-SERVE and Macmillan. Ramesh S Damani : Not at the current time. Aparna K : kochi ref. div yld is 7.7 percent. How is the company on fundamentals? Any thing to look forward to in terms of events in this company?Thank you Ramesh S Damani : The div of 10 should support the stock. rajesh : Sir, sensex stocks looks undervalued or fairly valued, would you place yr bet on sensex Ramesh S Damani : Over a year's time I think the Sensex will be higher. vikas : Do u see SBI doubling even from these levels as suggested by some other brokers Ramesh S Damani : I am in the bullish camp on SBI. sanujkadavil : ltwo weeks before kambai,uday kotak and mr kothari saying there should be some supply along with the market going forward. big guns like lic,uti,gic sitting with large chunk of sbi,acc,grasim,hinalco,infy,hll, etc.. is this supply will effect the next rally.. Ramesh S Damani : Mainly the supply will be from the IPO market. UTI has a small inventory of stocks, so supply is getting depleted. rks2 : Are you still holding Sh Raj Syntex? Ramesh S Damani : Yes BASANTM : Is Trent part of your core portfolio or just a entry? Ramesh S Damani : Just an entry. narayan singhi : r u still bullish on htmt bcoz still i have 1500 at 204 Ramesh S Damani : Yes Aparna K : Mr. Damani, do you feel that the Hotel stocks have had a good run and that one could book profits? E.g. Indian Hotels? Ramesh S Damani : All hotel occupancy is up except in Bombay. However i am booking some profits and am concerned with rupee appreciation. BASANTM : Could you please let us have your views on HTMT Ramesh S Damani : Currently bullish. nkrana : Rqstg your comments on the latest results of Mcdowell pls? Ramesh S Damani : Results make no difference. A co with 30% of IMFL can't earn 4 cr in a quarter. Management must improve corporate governance. sanujkadavil : sirwhy pantaloon going like a rocket.if shopers stop coming with ipo in next year.there should be some actin in zodiac clothing. any news on shoppers stop ipo Ramesh S Damani : Due within the next 12 months BASANTM : How about buying hotel stocks of Companies that operate out of Bangalore delhi and hyderabad(BPO boom will bring more people here) Ramesh S Damani : Taj, Leela are good play. sanujkadavil : sirare you tracking international travel house ..itc group company. Ramesh S Damani : I give a bullish recommendation. rakshesh : damaniji- which hotel stocks do you think will get affected by appreciating rupee? Ramesh S Damani : Mainly the big ones. India and East India. vikas : Mcdowell : Why there profits are so low 15-20 crores on over 1000 crores Ramesh S Damani : That is why the stock is so cheap. sachin : What will be the price of Morgan Stanley Growth Fund by Jan 2009? Ramesh S Damani : God may know that. sanujkadavil : if mallya win herbertsons..ub holding will get a operating business other than real estate.. if ub wins herbertsons an y immediate Ramesh S Damani : It will go to McDowell not UB Beer or Holdings. Aparna : What about pharma companies that have large exports to USA? Which cos. do you see impacted by the weak dollar? Ramesh S Damani : They will but margins seems better in these companies and they have some pricing power because they are competing with much higher import prices for medicine. Happy Diwali to all and thanks for joining. See you next week. Bye. |