Transcript of Chat with Mr. P. R. Dilip, Director, Gandhi Securities- 2nd Nov 2001
[04:30:47 PM] => Myiris : A very warm welcome to myiris chatmasala
[04:32:08 PM] => Myiris : Welcome to the live chat session, Mr. P. R. Dilip, Director, Gandhi Securities will be joining us shortly.
[04:32:42 PM] => DISCLAIMER :
[04:34:41 PM] => Mr. P. R. Dilip is the Director, Gandhi Securities. At the time of this conversation / chat, Mr. Dilip may or may not have positions in the stocks mentioned below, although holdings may change at any time. The views expressed by Mr. Dilip is based upon information that he considers reliable, but does not represent that it is accurate or complete, and it should not be relied upon as such. Mr. Dilip, his company and its affiliates, officers, directors, partners, and employees may, from time to time, have long or short positions in, buy or sell and deal as principal in the securities, or derivatives thereof, of companies mentioned herein and may take positions inconsistent with the views expressed.
[04:34:58 PM] => None of the information contained herein constitutes, or is intended to constitute a recommendation of any particular security or trading strategy or a determination that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. You should consult with and rely upon your own advisors whether and how to use such information in making any investment decision.
[04:36:30 PM] => Lastly the views expressed by Mr. Dilip have no bearing whatsoever with that of IRIS Ltd. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website www.myiris.com.
[04:36:46 PM] => Welcome to the chat session Mr. Dilip.
[04:39:09 PM] => Raghu : Which industry can outperform the market expectations in next two quarters. I mean precisely which industry to invest in?
[04:39:43 PM] => PRD : FMCG, Automobile & Breweries
[04:40:38 PM] => Hemu : What's your opinion on the quarterly results? Does it send confusing signals? Media has been predicting doomsday for tech, and here we have the top companies coming up with respectable figures.
[04:42:28 PM] => PRD : Apart from the top companies like Infosys and Wipro, the rest of the Tech. companies have failed to show any kind of positive trend.
[04:43:18 PM] => SanjeevB : Would you recommend Infosys at current levels? It looks very unlikely to come down.
[04:44:05 PM] => PRD : Infosys has moved up recently from Rs. 2200/- levels to the current levels of Rs. 3000/- A healthy correction of around Rs. 300/- to 350/- can be expected and at those levels one can enter.
[04:45:34 PM] => Jay Arora : As an investor what are the most important things one should be looking at? I am a first time investor.
[04:47:50 PM] => PRD : If you are a first time investor as you have mentioned, you must be extra cautious while entering into equity market. I would suggest you to put 40% of your investments in fixed income instruments, 40% in a diversified portfolio of quality stocks at appropriate prices (difficult to generalise) and balance 20 % should be kept aside in cash to capture good opportunities in the market (with the help of a professional guide)
[04:49:01 PM] => Ranvir : Where do you see the IT stocks and BSE Sensex by March 2002?
[04:51:53 PM] => PRD : At the current Sensex level of 3092, the technology sector has a weightage of 14% in the Sensex. As the NASDAQ impact on Indian technology companies are very apparent, unless the sentiment in US improves on technology stocks a run-up of tech counters are unlikely. As the stock futures are being introduced, the liquidity in the heavy weight stocks would certainly increase. As a result of this there would be more Institutional participation in the market and this would certainly improve the Sensex levels.
[04:54:07 PM] => Manoj T : Is Reliance Petro a good pick at 30 levels?
[04:57:26 PM] => PRD : As the result of RPL was better than the rest of the Refinery Companies, it has attracted some interest from the market players. Reliance Petroleum has a state of the art refinery, which has the flexibility to process different kind crude oils. RPL's strategic location near the Arabian coast only helps them to improve their cost effectiveness and better export capability for their products. It is a very long-term bet.
[04:58:17 PM] => David : Read somewhere that pharma is poised to be the next big boomer. Do you agree?
[04:59:34 PM] => PRD : MNC pharma companies and Indian Companies with good R&D capability would certainly do well.
[05:01:07 PM] => MariaG : What's been your returns like for the last fiscal?
[05:02:41 PM] => PRD : We had identified 4 multi-baggers
[05:03:33 PM] => Simon Jose : What is your view on Ramco systems?
[05:04:09 PM] => PRD : It is a single product company. Very difficult to predict.
[05:04:33 PM] => Barun : Sir, Don't you think ICICI Bank would have been better off had it been left alone?
[05:08:16 PM] => PRD : I think the consolidation in the financial sector is inevitable. Therefor the merger looks timely.
[05:09:08 PM] => Manohar : Your view on ZEE's business and future plans. Is it worth entering at current levels?
[05:09:35 PM] => PRD : Lack of transparency and corporate governance has damaged the image of this company. Otherwise the company is in a good business. At around 75-80 levels it might be worth looking at.
[05:14:08 PM] => Murali : Sir, Glaxo hit the upper circuit today. Any particular reasons you can think of apart from a buying spree? But still why?
[05:14:51 PM] => PRD : In today's market, one of the safest industries to stay invested is Pharma. Valuation of MNC pharma is much cheaper than the Indian counterparts. For example Dr. Reddy's PE is 46 and Glaxo's PE is 18. And also a lot of asset shifting from tech sector has happened to pharma -especially MNC Pharma.
[05:15:23 PM] => Ramesh Naik : Do you think L&T is a good bet at current levels? What's your opinion on the company?
[05:16:17 PM] => PRD : It is a good stock to enter at Rs. 150/- levels. Once the unlocking of their cement business happens, the company becomes much more attractive.
[05:17:20 PM] => Gupta34 : As an investor are there companies which are lying unnoticed, but in your opinion has a bright future?
[05:17:49 PM] => PRD : Yes. Mc Dowell looks like one of them.
[05:18:15 PM] => Ajay D : Do you believe that SEBI has been an effective regulator? Why?
[05:19:51 PM] => PRD : SEBI has improved the investment environment for investor like you by a great extent. Any improvement is always welcome.
[05:21:35 PM] => Manish : Does Mukta Arts interest you?
[05:21:50 PM] => PRD : No.
[05:22:43 PM] => Nilesh : Now that the US economy is in recession, how long do you think the slowdown will continue? Is there any point in running after equities in this market?
[05:23:38 PM] => PRD : Difficult to predict how long the recession will continue. As far as the investments in Indian Equity market is concerned (non-tech), the US market should not be a cause for worry.
[05:24:02 PM] => Nirmal Jain : I want to invest in Silverline. Your opinion?
[05:24:39 PM] => PRD : I would stay away.
[05:25:37 PM] => Tommy : Do you think the Indian markets will become as matured as the ones in the developed countries and if yes, when?
[05:26:04 PM] => PRD : If you are talking about volatility in the market, then developed markets are also equally of impulsive nature. In terms of the depth and efficiency, Indian Market will be at par in 3-5 years time.
[05:26:51 PM] => Arun : Do you see the interest rates coming down any further?
[05:27:02 PM] => PRD : Likely.
[05:27:15 PM] => Nimish Sheth : What do you believe are the sectors to invest in today?
[05:27:45 PM] => PRD : FMCG, Automobile & Breweries.
[05:29:25 PM] => Amit Pamecha : Which sector do you think would be out-performer in the next quarter?
[05:29:54 PM] => PDR : Automobile, MNC Pharma & Breweries.
[05:30:49 PM] => R Yadav : When you trust professional fund managers and invest your money with them and when they give you the kind of returns which they have been, where do you go?
[05:31:45 PM] => PDR : Go to people who have given returns!! May be us.
[05:32:07 PM] => Naresh : Should I buy Digital Equipment now?
[05:32:27 PM] => PDR : No.
[05:33:16 PM] => R Parikh : Sir, What's your personal opinion about market regulatory bodies? Do you think it's a case of being 'wise after the event'?
[05:33:50 PM] => PDR : No comments
[05:34:36 PM] => Ramkrishna : What do you think of PSU oil companies?
[05:35:26 PM] => PDR : There is lot of value in BPCL and HPCL due to their marketing infrastructure. Should be good long-term bets.
[05:35:58 PM] => Sameer K : Are F&Os better than badla?
[05:36:26 PM] => PDR : Yes, because it increases transparency.
[05:36:49 PM] => Sandy : Any news on Reliance infocom?
[05:37:11 PM] => PDR : Not much.
[05:38:36 PM] => Mathew : Are you in the business of recommending stocks to MFs? Do they approach you?
[05:38:57 PM] => PDR : Yes.
[05:42:08 PM] => Sabu Maliyil : What will be the impact of derivatives trading in India? How do you expect it to perform?
[05:42:47 PM] => PDR : It would improve liquidity in the system and would provide excellent hedging mechanism which was missing.
[05:45:56 PM] => Gladwin : What are the various forms of Options? Could you kindly explain?
[05:47:17 PM] => PDR : Gladwin, this could take some time and personal meeting is necessary. Contact us if you want to learn.
[05:50:41 PM] => SPR34 : What are the margins currently on buying/selling F & O's?
[05:53:21 PM] => PDR : This varies from stock to stock. It is as per SPAN calculation given by exchange.
[05:55:15 PM] => Raghu : What is span margining system?
[05:58:17 PM] => PDR : Raghu, this could take some time and personal meeting is necessary. Contact us if you want to learn. Anyway I think you need not go in details of calculation.
[05:59:25 PM] => Manohar : Which are the tech stocks you are recommending these days?
[06:00:20 PM] => PDR : None at current levels. At lower levels watch for Wipro and Infosys.
[06:04:40 PM] => Ninan : Sir, How do you rate Novartis?
[06:05:55 PM] => PDR : Good company but not growing as fast as others in the sector.
[06:07:15 PM] => Varadan_s : Can you please highlight which are the popular brokerage houses offering margin trading facility?
[06:07:32 PM] => PRD : Not aware.
[06:07:46 PM] => Preetha : What do you reckon would be the sales multiple for IT Services companies - medium size?
[06:08:11 PM] => PRD : 2 - 3
[06:08:32 PM] => Preetha : What would be revenue multiple for mid-range IT services company with a focus on e-business?
[06:08:48 PM] => PRD : 4 - 6
[06:09:15 PM] => Mathur_sumit : What do you opine about second rung tech stocks from a 3-month perspective?
[06:10:20 PM] => PRD : It is always safer to be with the leaders of the industry. But there are emerging companies also, one has to be very careful while selecting these would be leaders and can not generalize while investing.
[06:11:15 PM] => Sudhakar : Thomas Cook offered Rs 361/- for buy back. Currently it is trading at Rs 288/-. Is it worth taking the offer or wait and watch?
[06:11:57 PM] => PRD : If you are holding the stock then submit for buy back.
[06:12:32 PM] => Naser Mohammed : What do you recommend on Satyam Computers? Sell or hold?
[06:13:11 PM] => PRD : Shift your investment to better quality stock.
[06:13:30 PM] => Pallavi : Are the current market valuation of IT companies low?
[06:14:09 PM] => PRD : Not for all of them.
[06:14:37 PM] => Sabu Maliyil : What will be the impact of derivative trading in India? What do you expect in the next two years?
[06:15:25 PM] => PRD : It will improve the liquidity in the system and provide the much needed hedging mechanism for the larger players. A healthier market.
[06:15:50 PM] => keen : What is the future of e-commerce services in India?
[06:16:12 PM] => PRD : It is a very big market. Innovative guys would succeed.
[06:17:07 PM] => Sudhakar : In the current scenario, do you suggest debt funds, which are yielding 11 % or equities. If equities, which sector and scrips, what are the entry and exit prices?
[06:19:05 PM] => PRD : One should be clear about his/her risk taking ability while investing. If you have an appetite for higher risk, then equity investments (when the market gives a correction of around 150 to 200 pts.) would give you better returns.
[06:19:29 PM] => FMCG, Automobile, MNC Pharma & Breweries are the sectors to be watched.
[06:20:48 PM] => Nestle, Hero Honda, Aventis, Mc Dowell are the few scrips worth investing at around 15% below the current levels.
[06:22:22 PM] => Myiris : Thats the end of the chat session for today.
[06:23:03 PM] => Myiris : We thank all the participants for logging on.
[06:24:30 PM] => Myiris : We thank Mr. P.R. Dilip, Director, Gandhi Securities for his valuable insight and for making this a lively session.
[06:25:56 PM] => Myiris : See you all on our next chat session on Monday, November 5th, where our expert guest will be Mr. Tridip Pathak, Fund Manager, IDBI Principal AMC.
[06:26:27 PM] => Myiris : Till then bye from us...........
