2010-05-04
Chat Transcript
AMAAN : Sir, what happend to market
Ramesh Damani : have been traveling so do not have a close view..but it seems that the global markets have entered a period of correction..
AMAAN : sir, what is your views for godrej inds for short to midium terms
Ramesh Damani : remain bullish
rupin : Dear sir,can you disclose the latest entrant in your portfolio for small investors like us? please sir,do it.thank you
Ramesh Damani : i have really not added anything during the last 2 weeks
geturnikhil123 : Sir, how do you find videocon industries? Mr Dhoot says that the valuation of Videocon Telecom is 12000 crore Rs and we know that it is a 100% subsidiary of Videocon Industries. how come then the mcap of Videocon Industries is 6500 crores? Sir, kindly explain, would be of great help.
Ramesh Damani : that is the way of the markets,,markets clearly do not believe that Videocon telecom is worh 12,ooo crs..only time will tell
amhussain : sir how are tata motor DVR looking after recent run up?can it be brought at current levels or u thk it is expensive?
Ramesh Damani : teh gap between dvr and stock shoyld not be more than 10% maximum i feel...anything more should allow the gab to close
echankya : Sir, would you trust the management of Balaji Telefilms to utilize cash in the balance sheet in minority shareholders’ interests?
Ramesh Damani : yes they are experiencing a business slow down..
haridhar : Asbestos is amid of the health issue- in fact banned in Europe, I think.. how do you view this big cause for concern for Everest Ind?
Ramesh Damani : it is a concern but the litigation has been restriced in the west only..we have had no injury or death due to asbestoes.
nehamathur : Banco Products: The company came out with net profits figures of 78 crores for this year. What is the major reason for this company to clock 20% margins where as other auto component industries are not able to achieve even 10% margins? Do you think acquisition of NRF will bring in more profits during the course of next few years?
Ramesh Damani : they have some pricing power and excise cuts have helped.the accquisition will dilute margins but help in increasing the quantum of profit...
haridhar : US realestate is finally finding takers.. Bill Gross of Pimco, says US real estate is nearing a bottom and could eventually be a better bet for investors than stocks or bonds.. Where do you place Indian real estate versus Indian stocks?
Ramesh Damani : real estate is a local market..bombay still seems to high
nehamathur : I found one company just see its figures: Market cap: 210 crores Cash in bank FY 10: 60 crores Debt: 15 crores Annual Profit: 45 crores PE: 3.5 Name: Aditya Birla chemicals earlier known as Bihar caustic Any reason for such a low valuation? Dividend payout is just 15% on 10 face value.
Ramesh Damani : numbers seem good..but do not follow them
sanecounsel : you had mentioned 290 as a stop for biocon.Does that mean that you are now completly out of biocon or are you still long . Thanks for sharing
Ramesh Damani : i have been travelling..hence not done anything
himanshu j j : sir when u say godrej prop will develop 100 million sq feet over next 10 years is including vikhroli and if its excluding vikhroli then do u think the major projects are in ahmedabad and bangalore where thier major development will come?
Ramesh Damani : yes ahemedabad is big,.but they will be a pan india developer
balloon : i think one of the important things to look at banco would be that starting fiscal 2010, it will now be a company with a turnover of close to 800-900 cr with diluted margins. but, if the management is able to imprve margins t NRF and also at the same time be able to increase sales by lets say 12-15% over the next 2-3 yrs...the company could well be trading at a P/E of over 12 times....and can potentially deliver 20-25% compounded returns even from current levels.....what do you think sir?
Ramesh Damani : yes they are smart people and they should be able to do that
nehamathur : Mic Electronics: The business is good then why the stock price just not go up. Is there any management issues? The company has pledged shares. Is it considered negative?
Ramesh Damani : pledging is not a negative..no view on the stock..do not follow it
sushmbh : Sir, you are positive about Century. It is looking attractive also. But do you see a clear up move in this stock from hereon? Or do you see it consolidating and are there chances of MORE downward movement still ? Is it a risky call now?
Ramesh Damani : i cant say what will happen tomorrow but it is doing well and should go up over time
gopal4444 : vip managementwants to be debt free co. within 2 years & also wants to acquire delsey brands,it will add around 10crs to its net profit(interest paid) dont u think it can touch 600 going ahead
Ramesh Damani : still a challenge...at that price mcap would be 1250 crs or so
ajuu007 : sir your view on encore software
Ramesh Damani : co has not been able to deliver for shareholders
rbhaya : Most of the times when we sell certain stock, it goes down soon after and vice-versa. How to train one self to time the market? Thanks.
Ramesh Damani : my experience says that it cannot be timed well...
vivekam.kul : Rameshji, warren buffett wants to do insurance business in India? Can we take a clue and start accumlating Max India where currentely lot of FEAR has accumlated due to ULIP problems which may not have long term impact?
Ramesh Damani : buffett is not interested due to low ownership percentage..(still 24%)
haridhar : Every 20 shares of TCI wins one share of TCI Prop.. what will happen to odd lot- i.e, btw 1--20 shares during allotment.. Get cancelled out? Also any idea on WHEN?
Ramesh Damani : i dont know about the odd lots..date also in unknown but it should be "soon"
echankya : Sir, I’ve been investing in equities since 1995, have MBA from a top 5 institutes in India and by profession I’m a commercial banker with 6 years experience. How can I enter for jobs in equity market? I feel that employers may consider me overqualified due to qualification and experience in banking, even though I’m ok with starting from entry level. Which level positions should I target? Your help would be greatly appreciated.
Ramesh Damani : no real idea other than interview as much as possbile
atuldugar88 : any view on essar oil and gspl
Ramesh Damani : essar energy listing in london should help this co get a better valuation.
sudhirraj4u : sir can we enter aegis@CMP. how do u see value in igarshi
Ramesh Damani : yes and yes
sanecounsel : Do you believe in taking concentrated positions in say 3 stocks or believe in the strategy of investing in large no of stocks say 15 or 20
Ramesh Damani : i do but it is very hard to implement
sushrish : Sir, where do u see the major support below 5150
Ramesh Damani : been travelling so dont really have a very good idea but market may just be travesing a broad range. Having tested the higher end it will now test the lower end
Ramesh Damani : thanks all..we will keep this an abbreviated session...since i am travelling...see you from mumbai next week..thanks ramesh