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'Balmer Lawrie makes sense'

April 05, 2005 17:13 IST
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vatsal : hello sir i want to ask u bt 2 or 3 companies first is jagtji industries which is a liquar company whats ur view on that and second one is gillate india sir there is a small stake of Mr. radhakrishna daamani in gillate. I heard that Mr. junjunvala ur frnd believe him a guru. so can i buy ggillate at this level for a long term?
Ramesh S Damani : Hello everyone thanks for joining let's start. All liquor stocks could be re-rated. Gillette looks good to me for patient investors.

Rahul : Sir what are your views on Shriram Transport. The company will give an EPS of Rs 9 in FY 2005 and Rs 12 in FY 06. The stock trades at less than 5 P/E on 2006 earnings? I think it is an excellent proxy for the infrastructure spend in the economy. What are your views sir?
Ramesh S Damani : It does make sense but finance companies do not get much discounting, overall I am more impressed with Sundaram Finance.

ahmedabadguy : Damaniji do you feel that market may have topped out in the short time frame( 3-4 months)??your views in this regard do carry a lot of weight for us...
Ramesh S Damani : I am not a great market timer.

ashu : Sir, few days back you said on cnbc that one can buy Mcdowell and UBHoldings at current levels? Can we go for them now?
Ramesh S Damani : That was 2 weeks ago.

AmitKumar : I have seen your recommendation of VSNL on this board but the stock seems to be underperforming. Approx what time frame do you see the company bouncing back and start performing-1to2 yrs or even more
Ramesh S Damani : I am a patient man.

Rahul : Sir what are your views on Rajratan Global Wires (Rs 133) and VXL Instruments (46). Is VXL a good turnaround candidate and would you enter at these levels? Please reply
Ramesh S Damani : A dear friend of mine is recomending them.

Ramesh S Damani : Sorry, do not folllow it.

JOEGRANVILLE4321 : ramesh,what is ur view on mid cap tech in general and for sonata nad aztec in particular?thanks
Ramesh S Damani : Generally I am bullish on mid-cap tech.

abracadabra : would yu continue to stay invested in bharat earth movers ltd and would yu add more on declines if an investor like me does not own it
Ramesh S Damani : I would hold at these levels. The results were stunning.

JesseLivermore : Abee info consumables today reported its starting a franchisee shop in hong kong. Isn't it strange for a company to report such a thing when they've barely made a mark in domestic market. It just puts off would be investors due to such gimmicks?
Ramesh S Damani : I am not sure of business model though recycling ink would be good if they could do it in HK.

SA : VST ind : I think it deserves second look specially after GFI rocketed last month. its really cheap stock
Ramesh S Damani : It is, very cheap. I own it.

SingaporeJB : Hello MasterGi,Here is my homework. Company: Calsoft CMP 49Investing Rational: (1) Mcap 22Cr - is in our favour (2) Bookvalue 55 (3) Good Mangement (With financial backing of Chemoil Cor Corporation, US)(4) Presence in more than 10 countries (5) Also involved in product development in most business segment , OBIS, DeRisk, SmarBroker, Market Server, Dr.DMG, DCMS to name a few (6) Recently assessed at CMMI Level 5 (6) Recent 3 acquitions, 100pc WebSpectrum Software Pvt Ltd- 51pc stake of American HealthNet, 51pc stake in Team FrontlineAppreciate your valuable feedback
Ramesh S Damani : One needs to visit them in order to gain confidence.

ahmedabadguy : Sir as you said in the last chat that market will punish the companies who takes upswing in the market to issue more and more equity..How you rate Construction stocks like IVRCl & HCC from this levels...Still a very much hold???
Ramesh S Damani : They all have had a huge run, so be careful in near term.

SHCM : Sir, are you still bullish on Nucleus software, its going down??
Ramesh S Damani : Yes, that is the way the markets are, up and down.

DamanisFan : Sir ! I really salute yout great conviction.I am following your chat for three years and saw all ppl (INC. me) bugging you with mcdowell which you made ppl buy @35-50 nad its almost seven-bagger and it isnt over yet.Great conviction.Hope to see more of sich picks in future
Ramesh S Damani : Thanks. Like I said, you are not right or wrong because people agree with you are not. You are right if the facts and figures are with you, in McDowell they were with me.

TINI : sir, dont you think the valuation of gateway distriparks are very high compared to balmer lawrie. balmer is more established & superior then gdl. I think market have not see the valuation of balmer. thnaks
Ramesh S Damani : I think Balmer Lawrie makes sense to me. It is looking good on charts. I own it.

sree : sir i have invested in mounteveret mineral water shares 2500@36 please advice on this scrip
Ramesh S Damani : Stock has had a good run, I have booked some profit on my trading position.

Rahul : Sir also what is your view on Dlink given the growing Broadband revolution in India.
Ramesh S Damani : They should do well.

pongo : Sir,do you feel Mount Everest Mineral water is a good buy at todays rates also.On your advice I have bought 1000 shares at Rs 31.00 a week back
Ramesh S Damani : It is well valued at these rates.

TINI : sir, if mallya has to list any ub group company in overseas, what according to you suited the best in mcdowell, ub holding & united breveries and why. please reply. thnaks
Ramesh S Damani : UB Holding.

SA : UB Holdings : Sir current rate does not even cover Mcdowell part what about other business. Another thing worldwide HOLDINGS / INVESTMENT cos. quote at 70% of Parent co. but in UBH case it is around 30% as combined mcap of UBH should be 1000 crore + + UB City + Kingfisher . Isn't amazing value
Ramesh S Damani : Amen to that.

kans : Ramesh ji - we do not talk on Indo Matsu - for long ? Do you continue to hold good view on this stock ?
Ramesh S Damani : Unfortunately the company is not delivering.

BLAZING : Ramesh, your favorites TISCO and SBI are taking a beating! Do you know of any particular reasons?
Ramesh S Damani : They have been getting hammered.

sri : Sir, are you still bullish with SWARAJ Engines, it looks attractive pricing now..can we enter at these levels?
Ramesh S Damani : I think so.

gargr : Do you see a lot of Value in Gati, Balmer Lawrie , Aegis & TCI.
Ramesh S Damani : Yes, I have all of them.

sudhir : sir kale has not been performing of late. in 1 of your chats u suggested that they should do rs.5/- this year but the results till date had been poor. your take
Ramesh S Damani : Stock price has done well. The company is behind a few quarters, but I remain optimistic. As I keep saying be patient. I have no ideas that work in one quarter.

Ramesh S Damani : I am not sure. I can't make up my mind.

baracuda : anice article on todays rediff site business section titled this bull run aint over yet his explaination makes sense please read
Ramesh S Damani : I will take a look at it.

sanujkadavil : sir hindustan motors please ...... what are your views in it
Ramesh S Damani : I would keep an eye on it.

Ramesh S Damani : I am not bullish on its prospects.

Neewbieatstock : Sir Which companies do you think could come in for bidding of united spirits ?
Ramesh S Damani : My guess is all the major companies.

SA : Sir : Is there any multibagger left in your kitty though market has huge run up but then we know its far from over . One by one sectors are giving huge return latest being Construction and Oil exploration cos.
Ramesh S Damani : Balmer Lawrie could surprise on the upside. I own it.

william : Hi Ramesh : Have u taken a look at Mount Shivalik as yet. Also is it worth buying UB holdings level this
Ramesh S Damani : Unfortunately not, UB Holdings continues to look good.

TINI : sir, another ub group company mangalore chemicals & fert. is a good turnaround story with new management & new bussiness developments. dont you think it is good to buy & hold for 2-3 years for realising fruitfull profits. thanks
Ramesh S Damani : Naptha prices may be a cause of worry.

ahmedabadguy : Sir do you think Banco stock will deliver good result for fy 06?any followup on the stock???
Ramesh S Damani : My sense is that they are doing well.

SA : MCDOWELL : Would appreciate if you could give idea what should be right valuation for United Spirits . Remember i am not asking what will they get from foreign partners .
Ramesh S Damani : Mallya feels around $1 billion. That is just a guess.

Keshav1 : Your views on Linc Pens, Surya Rosni, Blue Star Infotech
Ramesh S Damani : I think Surya Roshni could be a good trading punt. It is linked to the steel/construction industry.

vatsal : sir do u believe that tcs is a company that we can leave for our next generation to get good aprisiation like infosys
Ramesh S Damani : Not at this valuation. You have to buy these companies cheap and assume they will work out.

rajumr : Hello Damani, Which ones do you recommend in animation sector? There has been a lot of news in the sector recently.
Ramesh S Damani : Crest and Elixsi.

deewanji : sir u replies question to those investers who have knowedge of stocks/mkt not the starters
Ramesh S Damani : Format is not suitable for giving long explantaions.

sunder : among gati & balmer lawrie if one has to buy onw which will u recommend bcoz i cant buy both pl. reply
Ramesh S Damani : I would look at Balmer first.

jpj : sir your views on Nestle India and Venky'sAlso to note Nestle india has bought Purina Petcare(worldwide) and venky's has also got into the processed food business for pets.
Ramesh S Damani : Both look good to me.

vatsal : sir what's ur view on vst industires for a long term and sir i have seen recent results of companies but there is no growth so whats reason for buy it just give me one clue plz
Ramesh S Damani : Rs 300 crs for a BAT company. It is too cheap. When growth comes you wont get it at this price.

sanujkadavil : sir one intteresting question...... sir if we buy a number of very very low priced companies whose shareholding pattern is sound and keep it in our lockers for nxt 5 years .... if ever a company out of our lot of penny companies run ..... we can get back our money we invested in all companies .... what do you say
Ramesh S Damani : That is what John Templeton did.

sureshmakhija : godrej ind has opened new subsidaries in cyprus...can we buy it at current price..??
Ramesh S Damani : Looks okay to me.

 JesseLivermore : That was the basis of Michael Milken's junk bond approach. Diversified portfolio of junk bonds, if even 1-2 work, portfolio does well. Doesn't always work.
Ramesh S Damani : That is correct.

ahmedabadguy : Sir it is very true that timing the market is very difficult...But for trading positions what is your advise in general looking at next few months..
Ramesh S Damani : I don't advice traders.

aayush : Sir..Crest results are not so good but and if i have to pick one between CREST & ELXSI..which looks better to you at this prices.
Ramesh S Damani : I prefer Elxsi. I own more of it.

sree : sir iam reading one up on a wall street ,its good ,look for multibaggers rather than big companies u r view
Ramesh S Damani : It is a great book.

vatsal : Sir u r very respectable person and much old person in Dalal Steet. What r the other people in which u believe have a good sense of market? Mr Raakesh junjunvala and Mr Nimish Shah or any other?
Ramesh S Damani : I am also a student of the market Rakesh and Nimish are the masters.

abracadabra : once vastal reads the intelligent investor than she will realise why 300crs is cheap for vst does the co pay any dividend
Ramesh S Damani : Yes almost Rs 7

deewanji : i m having etimes in front of me it is showing pe of ub holding is 930 does it make sense to invest in it
Ramesh S Damani : my friends PE is one matrix, also look at market cap. Market is discounting the future not the current. Why did Scottish and Newcastle pay 575 when the PE was 1000 plus. Do some homework.

TINI : sir, why you said that balmer lawrie will surprised every one, is there any great thing happening in this counter or market is taking clue from gateway distriparks. thanks
Ramesh S Damani : My sense is that the company should do well going forward. Looks good on charts also.

pongo : Sir,I have bought 100 shares of GAIL at Rs 205.Do you feel that I have got a good bargain, with a good scope of appreciation
Ramesh S Damani : It is a good defensive investment.

vatsal : sir thank you very much for ur answers but sir whats ur view on bayer diognostic? plz reply sir
Ramesh S Damani : Don't follow it.

kans : Whan you show your ownership while recommending a stock what do you intend ? is it for disclosure or to instill confidence on the stock ?
Ramesh S Damani : Disclosure so that you know I am a rejudiced in favour of my position.

JesseLivermore : One very interesting book recently bought, not read, but heavily recommended by John Kenneth Galbraith, is 'Against the Gods', the story of risk. Pls take a look Sir.
Ramesh S Damani : I have read it, it is a great book.

RomilSingla : SURYA ROSHNI :- Sales is around 1000 crores and M.cap is just 100 Crores. However the Net Profit Margin is just around 1% (i.e. 10 crores). Do you see any chances of higher margins going forward and hence the stock getting re-rated. What future do you see for their Steel Tubes segment on margins front ??
Ramesh S Damani : They are linked to construction. See where those stocks are, things can change, downside is limited

Madhu : Sir, u r recmonedation On Mcdowels theww years back was just great. We all made huge profits on Mcdowels who ever bought at Rs40. Do u see any other undervalued stock similar to mcdowels at this point of time???
Ramesh S Damani : Not in the same league no.

Ramesh S Damani : That is the idea. Find a few good ideas.

DamanisFan : SIr, the voracious rader you are.You should also hold BOOK chat once a month.
Ramesh S Damani : That is a good idea. Maybe do it for TV once in a while.

baracuda : can anyone attend your lectures which yu deliver in the bse do yu charge a fee oe does the exchange,graham and dodd used to do the same in columbia varsity back in 1950
Ramesh S Damani : The BSE charges a fee. My portion is donated to charity.

RomilSingla : RETAIL :- The indian retail market is currently at 180 BILLION US DOLLARS and it is highly unorganized. Do you think that FDI(or even without FDI) retail will do well in meidum to long term ?? People(specailly young urban community) tend to spend more and tend to save less. Moreover the median age of people in India is 24 as compared to 30 in USA and 36 In China. Do not you think that RETAIL(Specailly the integrated Retail which even have Shopping malls to Mutliplex inside the same complex) would do well ?? Any picks in this sector ???
Ramesh S Damani : Stocks have had a great run up. no new ideas at this point.

mspc : Is UB coming with a second open offer?
Ramesh S Damani : No.

sureshmakhija : sir pls let me know abt ici india ...promoters hold 50% ...asian paints has bgt 9 % at rs 200.. 40 cr share capital 500 cr reserves co gives 100% dividend..pls pls let me know...pls have a look at it..?? gail and ici both trade same levels which is better...??
Ramesh S Damani : It makes sense to hold on to ICI.

AmitKumar : Damani Sir, Don't know if you track Subex systems.PE expected 04-05 will be around 14-15. Just bagged a large order from South African operator for its fraud manage product.....your views.
Ramesh S Damani : I do. Unfortunately they dilute equity too often for my interest.

bhu : SIR PLEASE REPLY What are the prospects of AMex Information technology? It has good EPS but the stock does not seem to move.
Ramesh S Damani : Stock is cheap but nothing exciting about it.

SA : MEDIA : Do u think when FDI is allowed this sector has potential to give multibagger return. Which one looks best in this parameter
Ramesh S Damani : yes, I do.

sureshmakhija2 : sir ji good evening everybody is now pessimist about india clsa is saying that market will go down to 5900 and abn amro yeterday say that its starting of long bear market from next quarter and recently mark faber was also saying that he is not bullish in long term for emerging markets sir is it really market is heading for bear run or the indias growth srory is still their plzzz comment
Ramesh S Damani : Difficult to say. However earning growth seems good and I remain invested. Thanks all for joining. See you next week. Bye.

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