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'BEML is on a good earning wicket'

April 19, 2005 16:49 IST

vatsal : Sir again thank you very much for ur feelings and helping nature to us. Sir Any news going in VST Ind ahead of board meeting? Sir give me one clue aout Sandesh if u recommend a good investment.
Ramesh S Damani : Thanks all for joining. Let's start.VST is being revalued along with other tobacco stocks. Sandesh I am still studying, I own both.

moturik : sir, i entered the market 18months back buying matrix labs........tripled my investments and then started buying into other companies after doing some homework on them. what i have noticed is i buy on a high day and sell of in a falling market when the price reaches my buying price. i am making some loss now. can u advice me on how to make a sound profit
Ramesh S Damani : No simple answers. Use common sense, conviction and patience.

sunny : What is your view abt mohan meakin at Rs. 210 levels
Ramesh S Damani : It has moved up too fast. Book some profit.

JOEGRANVILLE : ramesh, i believe that water is goign to be along ter story part. the driniking water so i think whole supply chain involved in water from water purfication to companies producing equipment fopr water cleaning as well drinking water company will benefit from it???in US, around 70 companies in this sector r listed??in ur view, what r the potiential companies in india which will benifit from it, apart from mt.everest???thanks
Ramesh S Damani : I am still studying them so no new idea at this point.

vdatar : Mohan Meakin PE Ratio is less than that of Mcdowel & UB Ltd.Do you think Mohan Meakin is a GOOD Long Term (2 Yeras} Buy?
Ramesh S Damani : It has had a good run up so not at current prices.

vatsal : Sir I know u r big personality but sir I am giving my mail id sir I am in Australia but original from ahmedabad Sir I do everyday to find new ideas but I need ur views on that so sir plz if u have a very small time for a small person who is fan of u then plz mail me sir my mail id is
Ramesh S Damani : Not a question of a big personality but can't answer individual questions.

channdani : rameshbhai,,we take courage by your words that it is not BEAR MARKET and we should not panic..your views in TECH STOCKSsp. INFOTEC ENTERPRICE AND NUCLEUS??
Ramesh S Damani : Tech seems in trouble with investors. We will have to watch all results before having a view.

vdatar : It is reliably learned that Sundram Finance may be converted in to a Bank like Kotak Mahindra !FII are also buying this scrip.It is in the Insurance also.What is your take on this fuhdamentally strong Scrip?
Ramesh S Damani : It is in insurance, Royal Insurance. No news on a bank.

sriraman : Hi Ramesh, any clues, why your favourite Nucleus also got hammered?
Ramesh S Damani : Tech pack got hammered.

BRAHMA : Good evening Sir, your views on GTL Limited at current levels please
Ramesh S Damani : No view.

Keshav : I am holding Shares of Surya Roshni since 1981. In between it had crossed Rs.200/- once. Will it repeat history?
Ramesh S Damani : Difficult to say.

shreerajca : what is your take on Borosil Glass (502219) 18 crores market cap. 130 cr Net asset value. It has 12% FII investments and 18% institutional investment. 40 years good track record and contineous cash profit, recent renovation of furnace to double profitability, it can be multibagger. is logic right
Ramesh S Damani : Logic seems on track, but I don't follow it.

SUNIL : sir i bot 20k shares of arvind products in october and blocked three fourth of my funds in it.... it did not participate in the bull and is not moving still now .... what should i do
Ramesh S Damani : That is for you to decide.

sriraman : Ramesh, do you think mid cap tech results will be same as large cap techs?
Ramesh S Damani : CMC was bad, Geometric was good. Nucleus is not US centric so it is difficult to say.

MEDIABULL : How would y9u view Tv-18 from here company at 9 times 06 especially in the light of its proposed venture into general news with rajdip sardesai? Does it appear as a multibagger from here?Please tell
Ramesh S Damani : They will tend to do well. Awaaz seems to have stabilised.

R.Kumar : MOHAN MEAKINS:- So there is no doubt that MOHAN meakins has value. Now the question is when will it get unlocked. As Radico Khaitan and Mohan meakins are the two big players after United spirits, they are going to be the next acquistions targets. Recently KAMAL NATH was saying on NDTV that they may think of imposing Counter-veiling duty on imported liquor. Then Global majors would have no choice but the domestic acquistions. Coming to Mohan Meakins, KAPIL MOHAN has recently put his money in INDUS Airways. As Airlines is a capital intensive business obviously Kapil MOHAN would require money to run it(as mallya needs money for Kingfisher airlines). So Value Unlocking may not very far away.( i mean it can easily happen in next 2-3 years time period).
Ramesh S Damani : I think that is a reasonable conclusion to make. Script has run up too fast, but around 150-170 levels, it is interesting.

channdani : sir, your latest views on GATI,,MOUNT EVEREST AND UBHOLDING???PLease..
Ramesh S Damani : They all look good, Mount as I have said is an immature company, (no earnings).

vikrantgoyal : hi sir we all know your suscessful falls on various stocks but .. u also must have had your share of failures also .. which stocks were they and what did u learn from them
Ramesh S Damani : MTNL, never worked out is the best example. Sold BEML too soon. Big mistake.

sanujkadavil : sirUB holding moving smartly, even in worst market. whats your call on ub holdings after the dream run
Ramesh S Damani : The dream continues to unfold.

R.Kumar : MOHAN MEAKINS:- PLEASE ANSWER. I gathered a lot of data about Mohan meakins this whole week and i found the following.They sell 8 million cases of IMFL(main product is OLD MONK Rum) per anuum.They also have 10% share in BEER market(Golden Eagle beer). Looking at the recent acquistions of Shaw wallace and UB Beer (by Stocish and New castle) , the IMFL business should be valued at minimum 700 crores and Beer buisness should be valued at 250 crores. So at the present valuations the company should be atleast 950 crores. Now as Mallaya would soon (in 6 months - 12 months) sell his stake in United spirits the entire liquor space will be rerated by atleast 2 times. So Looking at all this If Mohan Meakins gets sold after 1 year it would defintiely be valued above 1800 Crores. The Current Market cap is just 180 croes. So It is a potential 10 begger and i would mind holding it even for 5 years (because even then it will give me 60% Anuual return). Now looking at the margin of satety, i think it
Ramesh S Damani : It is not as valuable a comapny as McDowell. However, it makes sense to me at a price I recommended it.

sanujkadavil : sirfinally reliance struck the deal with champagne indage as expected, now onwards stock should be in the watchlist of investors, reliance energy investments bought 10% at 85. stock now trades at 115.
Ramesh S Damani : Unfortunately I missed it.

JesseLivermore : Kingfisher with 150 cr equity should be valued around?
Ramesh S Damani : Equity is 28 cr.

kalyan : Rameshji, Now that GATI has comeup with spectacular results what is your view on ageis, should we hold?
Ramesh S Damani : Yes.

vatsal : SIr u said ur studying Sandesh so sir is it a case like vijay malya is the management ignore the value of company? Sir is there any posibility that any big group take over it?
Ramesh S Damani : I have no news on that.

RajkumarDaga : Good Afternoon Sir, It was very informative to have heard you at Maheswari Pragati Mandal. I bought Carol Info, Mangalore Chem & Fert. how do you see them over 1-2 Years time frame
Ramesh S Damani : Thanks. They should be good during the timeframe mentioned.

AnjanaBPL : SIr..KingFisher AIrline start Operation in May 2nd is 100% subsidiary of UBH..but dont u think UB holding also rise from A LOW of 27 in JUNE 2004 to 251..?it is also already have a BIG RUN..isnt IT..?
Ramesh S Damani : It has had a breath taking run.

R.Kumar : GATI (RIGHTS ISSUE):- The rights issue is attractively priced(54 per share in ratio 1:2). However normally you are not in favour of companies diluting equities. Though in this case equity dilution is for expansion of warehouses. GATI is currently trading at 170 levels. These days sometimes It moves up sharply. Would you suggest to hold on even if it goes at 210 -220 levels.
Ramesh S Damani : I would. They need some money and everyone is contributing. They don't dilute every quarter.

ads : whats your view on RIL . You are getting the stock at levels that were 1 year back ?
Ramesh S Damani : I would look at RIL since a settlement seems near.

pogo : Sir according to you what is the period for value to unlock in Mount Everest, say 2-5 years???
Ramesh S Damani : Sound right.

deepak : Sir, Mcdowell is not doing well as compared to UB Holdings for some time. Do you think dream run in Mcdowell has finished now. Should we sell Mcdowell and concentrate only on UBHoldings?
Ramesh S Damani : That is for you to decide. UB holdings was more deeply undervalued.

grahul : kingfisher equity is 220cr?
Ramesh S Damani : No it is 28 crs.

JainV : Sir, Two stocks in this fall which cannot ever lose? Pls
Ramesh S Damani : Let me know their names when you find them

baracuda : mallya says kingfisher airlines will be a zero debt co from day one also says that will be cash positve from day one also says is in no hurry with the ipo untill co shows solid earnings do yu really belive what he says
Ramesh S Damani : It's hard too

arahaman : There is some sort of similarity between Mcdowell and Ion Exchange. Though they are in different segement, but both are market leader in their segment and both have a poor management. So why don't you think IOn EXCHANGE has the same fate like mcdowell. Specially when Water is a big story in near future.
Ramesh S Damani : It is too premature to compare the two. In fact they are not comparable.

mansri : Sir, Please share your latest view on Godrej Ind., Goldiam, SBI.
Ramesh S Damani : They all look okay to me.

R.Kumar : MOHAN MEAKINS:-LAST QUESTION:- Legendary Ad Guru IAN BATEY thinks OLD MONK is the only indian spirits brand which has the real potential to become a global brand. Moreover i have read on various site and people say this is a standard for people who want to shift to bit hard liquor.
Ramesh S Damani : Where did you read that.

sanujkadavil : siri was busy with my sisters marrige, i had send you the invitation, hope you get it.
Ramesh S Damani : I did, thanks and congratulations.

aegis : Good evening sir I have bought hinduja tmt at 300 and venkys at 90. your views pleaseeeeeeeeeeeee and can in invest more in these stocks. your views pleaseeeeeeeee
Ramesh S Damani : They both look good to me. I own it.

JesseLivermore : Sir, do you play the short side of the market?
Ramesh S Damani : Rarely.

pogo : Sir if you see, Godrej poultry products are fast catching up with Venkys in competition.Is Godrej poultry a part of Godrej consumer??????????????????
Ramesh S Damani : Yes in a sub.

stockscrazy : sir do you think Beml and BEl will go up more as USA is talking about strategic collaboration with India in defence sector?
Ramesh S Damani : BEML is on a good earning wicket. BEL closed a good quarter but is getting expensive.

channdani : water and sharab not comparable but if our gov'ts do not tap the rain water properly we will have to pay for every drop of water in future so ION EXCHANGE is not attractive now on for a long term??
Ramesh S Damani : Yes, but ION has to capture marketshare, McDowell has it.

Romit : Sir I remember you said once that Banco Products is a good company. It looks for a clear case of Bonus. Cos 4th Quarter results seems to be very good. Approx annual Turnover Rs. 140 Crs. Any updates sir??
Ramesh S Damani : No update, however it looks good to me.

deepak : Damaniji, are you still holding Mcdowell? Also, are you still adding more of it? Please tell.
Ramesh S Damani : Holding.

Ramesh S Damani : He is a friend.

ahmedabadguy : Sir, Are you disappointed with TCS result?and its effect on the market in coming days as it can breach some important levels and could trigger another round of stoploss triggers??can it be or market should absorb tech fall of today and stabilise very soon???
Ramesh S Damani : Tech has been disappointing.

SingaporeJB : After chating with you, now a days I am advicing my friend, instead of buying Mcdowell bottle, buy 2 share of the compay to make you rich.
Ramesh S Damani : Way to go.

vikrantgoyal : why have u stopped market wizards ... infact u should also host host a new show on books on investing with one of the channels
Ramesh S Damani : It will start on April 30 a new show called Wizards of Dalal street - Generation Next.

baracuda : doesnt GAIL look undervalued at the current price,at a market cap of 16000 crs,an virtual monopoly,expanding piped gas into cities,an investment portfolio of around 750crs,and steel prices going to come down by next year,whats your view
Ramesh S Damani : I would hold on to it at current levels.

sriya : This is a question not related to stocks but we would like your on it.If the world crude prices are going to go up in the next few years , is it better to buy gold at the current rates as a hedge to inflation
Ramesh S Damani : It would yes..

RajkumarDaga : Sir What do you think about VSNL can I add more at the current price? and Sir one good book for a beginner like me for value investing
Ramesh S Damani : I like VSNL, check my earlier transcripts for recommendations.

rjsvj : ir, is it true that promoters share in nucleus software is down to 6%? if that is the case then should we also exit? your informed view please.
Ramesh S Damani : I am not sure of that.

Keshav : !!!! Sir pl do not disappoint me - PLz before your sign off - Give your valued opinio on fresh exposures in VST Ind, Blue Star Info, DISA India, Linc Pen, Surya Rosni at current levels.
Ramesh S Damani : I don't comment on individual portolios I like BST, Surya and Linc.

csjatr : Dear Sir, i want to establish a live BSE terminal at kathua, jammu & kashmir.Please do tell to whomwe should approach or to which main reliable broker of BSE. we have already invested by acquring three shops in the heart of email address is, i want to establish a bse terminal at kathua,jammu & kashmir.please do tell to which broker house should we approach.
Ramesh S Damani : Someone like Motilal Oswal or SSKI.

SingapreJBB : Sutlej Industries CMP 155. Hi Ramesh Gi, I am your follower. Your advice really helping me lot Keeping your advice in mind, I have decide to invest in the stock of Sutlej Industries . I have mentioned below the reason for my investment. Could you please tell me whether my investment decision is correct or not and what other factors I forget to look? 1) Belongs to Booming textile industries. 2) Good Mangagement ( KK Birla Group). 3) value of holdings per share is more than CMP ( including 7.17% holding in Chambal Fertilisers which is equal to 84cr (mcap 1175 * 7.17) and 11% if Zuari Industries MCap 248*11% = 27cr (4) High book value 165 (5) 110 crores expansion unit came into operation from March 2005, income of which will come from this quarter (6) Expected PE for FY05 is around 9x (7) Moderate MCAP 165crore (8) dividend paying company
Ramesh S Damani : I am glad you are doing your own homwork. I haven't studied the company but your logic is good.

rsdadmirer : Mr.Damani, UB, McDowell, ITES sector etc., have been profound and pathbreaking value unearthing and price discoveries from you. I join others in saluting you. But with due respects to my fellow chat room investors, I would humbly suggest that we engage you with newer ideas and opportunities even while being stock-specific(which I find is the greatest commitment you have come to offer to us. Thanks and regards.
Ramesh S Damani : Water is a good place to look. Logistics seems exciting.

shreerajca : Sir, will u please study Borosil glass (502219)
Ramesh S Damani : I will take a look at it, thanks and good bye.