2010-06-29
Ramesh Damani, Member BSE 29 Jun- 16:00hrs
viswapraneet.et : Sir, in your opinion, are these good levels to enter OMCs like HPCL/BPCL? What abt the upstream ones like ONGC? Are these good levels to enter those too?
Ramesh Damani : Hello everyone thanks for joining in ..lets start... HPCL and BPCL can be entered at these rates. they are attractive franchises and will do well with deregulation
Dilip Collaco : Hello Mr. Damani, Do you think I can buy Precision wires (140) and Atul Auto (115) at these levels.
Ramesh Damani : they have both had a great run. I would buy them on corrections and not at any price
geturnikhil123 : Sir, Greetings of the day. I have done a thorough analysis of Tide Water Oil company. It
Ramesh Damani : and what does your analysis suggest..summarise it into a logical thesis
monikdharamshi : Chief : Your views on VST... mnc co. good yield and excellent prospects... consistently giving good returns..
Ramesh Damani : but fighting a shrinking market for cigarettes
rohit kapoor20 : sir,i have recently read your transcripts and i am new to stockmarket.would you still recommend me to buy vip,everest,gruh,banco,hitachi,ub beer after thier recent runup.do they still offer value?are they still cheap
Ramesh Damani : they are not cheap on a y-o-y basis, they may be cheap over the next 5 years..
jack_22 : ramesh, dont you think aegis is richly valued as it mcap has gone way beyond sales.? agreed the petrol deregualtion helps but nonetheless how do we justify it??
Ramesh Damani : if in doubt sell..that is how rothschild got rich....(ps one never knows what the market values at what time)
veerendra.kadam : Sir,If I want to gift few stocks to my grandson then which stock i want to buy now apart fm gruh, UB,Unied Spirit
Ramesh Damani : maybe godrej industries
happy2010 : hii sir ur calls r rocking dalal strett,, just wana know abt nhpc its a compounder over 3 5 years
Ramesh Damani : thanks..probably a compounder
rupin : Dear sir, is there any other trigger for ITHL except the commonwealth games? Can it be a 2 begger from 1-2 years perspective? Please share your views.thank you
Ramesh Damani : technically it seems to be very strong..counter suggests a higher price
wavestudent : Sir, u shave said u see value in airline stocks, which ones are your favourites?
Ramesh Damani : you should take a basket approach at this point...
jinrogers : Thanks for VIP- u got it right very early before all others. NOW, is TCI still remains a low hanging fruit and a fit case to concentrate?
Ramesh Damani : i think so
rohit kapoor20 : sir,any new recommendations?
Ramesh Damani : recentky bought some Geometric Software (71)...they are coming out of the worst phasse..skill sets they have are growing in importance with clients like Dassault...and Godrej`s are guiding the co...(my office trades in the stock and we have a vested interest in it)
klvprasad : Sir, What is is your opinion in Hyderabad Ind Vs Visaka Ind. Please comment on Gulf oil and Precision wires is still a buy after 50% hike in last few weeks.
Ramesh Damani : I like hyderabad Industries a bot better because it is a market leader,but all the roofing stocks are cheap..
monikdharamshi : SIR : YOUR VIEWS AFTER NATCO RESULTS ??
Ramesh Damani : after lookging at Piramal Health care valuation..my sense is that all these co`s will be rerated..and Natco has its own strenghts in the generic space
sandip.88 : Sir please tell me a good stock for one - two year investment with the stop loss & Target?
Ramesh Damani : that is not what this chat is about
himanshu j j : sir what is ur view on ksb pumps over the longer term?
Ramesh Damani : bullish
echankya : Sir, CONGRATS! For being correct on OMC
Ramesh Damani : still a ways to go before being vindicated
sandy_jain000 : What is the the best way to value a business? and how a retail investor who do not have access to management of the company, access a company
Ramesh Damani : value it by mcap..and ev..how a business man would value it...many a times the past b/s tell you all you want to know
rajivmansotra : dear sir if there is one greatest visionary of our capital markets it has to be MR. RAMESH DAMANI..WE ALL LOVE U SIR...sir TCI is consolidating at 117 and demerger is soon going to be materialised should we all start accumulating,since margins and volume seem to be expanding????? THANX
Ramesh Damani : my view on the company is unchanged..though the hike in diesel prices..may impact margins in the short run
rupin : Dear sir,now most of the good midcaps are running, we want to hear from you atleast one super midcap multibegger.Please fulfill our wish.thank you
Ramesh Damani : we have had some great stocks over the last one year...our jobis to identify good c0`s the rest the market does
pmohanlal : Sir, HPCL and BPCL is cheap on the basis of mcap to sales. HPCL is far cheap on the basis of mcap to it
Ramesh Damani : but bpcl has oil in brazil...I would own both
swamik : Dearest Ramesh, At times I feel bad on the cash flow, you have been recommending good stocks and raising cash is a big challenge for us. How do you manage those, give us some pointers to be effective on this. Like Warren Buffet says, moving from good company to stronger is a right option. Finding out the stronger is been a challenge, any idea on this too.
Ramesh Damani : no easy answers you have to build conviction and ride it..even through great pain
echankya : Sir, Real economy in India: You mentioned that real economy is doing better than financial economy? In which sectors this trend is more evident?
Ramesh Damani : consumer durables, property to get you started
candrin : yOU hAVE RECOMENDED gOLDIAM AND DECLARED rS.1/- PER SHARE DIVIDAND.CAN WE BY NOWOR NOT?
Ramesh Damani : yes co is turning around
swamik : Dearest Ramesh, How do you see the future of GAIL over a long term? Is it advisable to stick to it or moving the money to more promising stock makes sense?
Ramesh Damani : i would stick to GAIL as gas thorughput continues to grow..it is a business with a moat
divya m : Good Evening Sir, Regarding United Spirits the company has raised FUNDS VIA QIP and sold Treasury Stocks to clear debt of 2500 crores last 9 months before ,then everry quarter interest figures going up to 100 crores from 65 crores can
Ramesh Damani : good observation....not sure as to the reason
amparekh : sir,is it a good idea to buy good scrips by taking long term loans?
Ramesh Damani : generally no
hemant26 : Dear Ramesh, You mentioned in your last chat that you are bullish on the global AIRLINE business. Do you think that it would mean being bullish on Kale Consultants, as it has virtually no competition in its product at the world level as also the model that it has wherein additional business for the airline would mean more business for Kale. Can one enter at the present levels. Its PE for March10 results is about 6 now. Tks
Ramesh Damani : your logic is right but growth for these small co`s is always a challenge
smithashenoy : Hello sir,artson eng subsidery of tata projects is a interesting turn around story. EIL joint venture with TATA PROJECTS would bring in huge order to this TATA compny.Any views?
Ramesh Damani : yes, have started looking at it
pranjal1 : Sir any update on Linc Pen
Ramesh Damani : stock has been doing well....i think this year they should try to improve margins
krm_tdm : Sir, your views on Prism cements? we are not talking about this in the recent days? Pls tell me your views. Can we hold this stock?
Ramesh Damani : i am
amparekh : sir,is it a good idea to buy good scrips by taking long term loans?
Ramesh Damani : generally NO
trader009 : Sir food processing is going to be big thing in the years to come and many believe that it may be the next outsourcing story with vast agricultural land and cheap labor. have you come across any company in this sector which can scale up with the demand
Ramesh Damani : karuturi is following the model in ethiopia..but i am not familiar with the co
makhijasuresh : Sir, Hindustan Organic chemicals: main business is still bleeding. No clarity on the use of land bank. Are you still holding; if yes then what’s the logic
Ramesh Damani : i cant answer the same question every day..we buystocks when they are cheap and hope for value to emerge..no guarantees that it will...you take your chances
echankya : Sir, wanted to suggest a book: Mark Mobius: A guide to investing in emerging markets. Good to get macro details and how institutional investors pick countries while investing.
Ramesh Damani : thanks for the suggestion
jinrogers : Hv u read a book by Sashi Tharoor - The elephant, the cell phone and the tiger? Good insights on Indian evaluation..
Ramesh Damani : got the book have not read it yet
prashant78 : Hello Rameshji, you came up with UB with foresight of increasing liquir consumption. Any specific stock for non veg consumption like Venky
Ramesh Damani : i have recommended some stocks like that from time to time
shishirkapadia : sir, I am holding hitachi since more then 4 years in last dip I added more. Do you recomend to hold that for next 2 years.
Ramesh Damani : lets keep watching the results
sarvajeetchandr : Sir, What ROCE is the minimum for you to say that the business is generating a good return?
Ramesh Damani : i have no fixed formula
dhruva_rana : Sir: Peak oil when it becomes a reality (within 3 years as per US Dept of Defence) we will see lot of industries that will be wiped out.. any place you can think of where we can safeguard our investments??
Ramesh Damani : gold?, alternate energy
echankya : Sir, selling discipline: from your experience what proportion of your sale decisions are due to overvaluation (rather than change in company fundamentals)
Ramesh Damani : have not really thought of it like that..selling is hard...except at the top of a bull market where it is a matter of timing
kanupriyaa : Sir,as Biocon is well ABOVE the technical level of 300 once again and as you are bullish on the generic SPACE, do you see a good uptrend and a linear upward rally in this particular stock from hereon? Sometimes your insight does see clearly. We, as always, are highly obliged by your selfless help and kindness. We are your sincere followers, and your views matter a great deal to us. Kindly share, as always. Thanks. We have purchased it at 326, do you see it as volatile now, or do you see a smooth run from hereon?Should we add here? Do give your highly reliable views to us. We wait eagerly for u every Tuesday. Do guide us. Thanks.
Ramesh Damani : technical trades aer tough..i would keep holding it
dilipbava : sirji! ibn18 ,news channels,viacom colors ...with a good product basket .A candidate for a serious investing?
Ramesh Damani : look for the leaders in various news genres
dbengali : Sir, VIP annual report says about moduled furniture, and Mr Piramal is bullish with doubt digit growth. How big that segment can be? You views appreciated.
Ramesh Damani : really have no idea..too premature to comment
maneramesh : Dear Sir, will u recommended godrej ind.s based on its CORE business?
Ramesh Damani : based on its overall value
8186 : Sir how does your pick GRUH FIN compares with LIC HOUSING FIN.. . Which one should be invested in ?
Ramesh Damani : lic is a leader...and wil have a different premium..gruh is a play on rural housing demand
GTYGTY8 : Roofing industry : Is basket buy is best strategy or should we not buy Hyd or Visaka which are cheap as conpared to Everest
Ramesh Damani : i own all three, but my largest exposure is to Everest Ind
echankya : Sir, with all respect to you as our mentor; about Precision wires: why wouldn’t one prefer Pitti laminations with the same consumer segment due to lower valuations? Though Pitti has higher debt, but that’s ok and reflected in ridiculous valuations of Pitti. Pitti’s EBITDA margins in the last 5 years have been 1.5 times of Precision. Just trying to be devil’s advocate…
Ramesh Damani : you should thnink for yourself..it you find Pitti cheap by all means buy it...that is the correct way markets work
swamik : Dearest Ramesh, Any recommendation for the long term. How do you see banking sector? Accumulating KVB makes or wait for RBI move to increase?
Ramesh Damani : kvb remains cheap
echankya : Sir, financial projections: do you like to see financial projections for most of the stocks you purchase? Or only a broad idea and direction is enough?
Ramesh Damani : broad idea and direction..very sceptical of projection one, two three years into the future