| Transcript of Chat with Mr.Sandip Sabharwal.Fund manager, SBI Mutual Fund. - 9th September 2002 |
[04:35:24 PM] => Myiris: Welcome to the live chat session.
[04:35:45 PM] => Myiris: Sorry. We are a little delayed today.
[04:35:53 PM] => Myiris: Our guest today is Mr Sandip Sabharwal, fund manager, SBI Mutual Fund. At the time of this conversation/chat, Mr Sabharwal may or may not have positions in the stocks mentioned below, though holdings may change at any time. The views expressed by Mr Sabharwal are based on information that he considers reliable, but does not represent that it is accurate or complete, and it should not be relied upon as such.
[04:36:02 PM] => Mr Sabharwal, 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.
[04:36:11 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.
[04:36:39 PM] => Lastly the views expressed by Mr Sabharwal 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] => Myiris: Welcome to the chat session, Mr Sabharwal.
[04:37:01 PM] => jassi210: Can you please tell how one should analyse a company for long-term and short-term investment?
[04:38:23 PM] => SS: Typically, companies should only be evaluated as a long-term investment opportunity, in case you are a retail investor. In terms of the information flow available to retail investors, one should make it a case to go through the annual reports of companies which are also available on the websites these days. Besides this, other information sources can be financial dailies and business magazines. Evaluation can be on the basis of quality of the management, sustainability of the business model, the return on networth, expected earnings growth and the price to earnings ratio of the company.
[04:39:23 PM] => bharathisg: What are B Group shares? What is the difference between B1 Group and B2 Group?
[04:41:59 PM] => SS: Typically, B2 group stocks are those which are relatively less known companies and have a lower trading liquidity in the market. However, it is not necessary that a B1 group company will have better fundamentals than B2 group companies and it really does not matter which group the stock belongs to. This distinctions are mainly due to historical trading patterns when we did not have rolling settlements and dematerialised stocks.
[04:43:25 PM] => sudarshanchari: In which scheme should I invest for a maximum period of six months to earn the maximum amount of return possible at this time in the market?
[04:44:26 PM] => SS: There is no such thing as a 100% confirmed return in today's market conditions where both debt and equity schemes carry downside risks. However, given the state of the capital markets, I would say that a 50:50 share among equity and debt schemes would be a good mix.
[04:45:34 PM] => nilesh_cm: What is the future of techs in today`s market condition?
[04:46:54 PM] => SS: Technology stocks with good fundamentals are likely to do well, going forward. However, one has to be discreet while investing and focus on top rung technology stocks.
[04:47:44 PM] => Pushkar: Which sectors are you bullish on and where are you bearish?
[04:49:25 PM] => SS: We are bullish on technology, engineering and auto sectors. We are bearish on consumer goods and metals sectors.
[04:50:32 PM] => Martin: Which is the best pharma company to buy today?
[04:51:32 PM] => SS: This is a difficult call to make and I would not be able to make individual stock recommendations.
[04:52:30 PM] => Raghu: Are people moving out from debt to equity?
[04:53:24 PM] => SS: Such a move is not very apparent as of now, however, it is bound to happen in the near future.
[04:54:41 PM] => Vinod: Can you tell me something about your funds? What have been the returns like?
[04:55:43 PM] => SS: Our funds had been the top performing funds in various categories till 2000. However, our performance suffered in 2001 mainly due to our overweight stand on the technology sector and the sharp meltdown seen there. For individual scheme performances, you can visit our site www.sbimf.com.
[04:56:28 PM] => NG76: How would you rate your fund's performance vis-a-vis other competitors?
[04:58:22 PM] => SS: Our investment philosophy is typically a bottoms up approach where we invest in our schemes based on individual company fundamentals and their outlook, going forward. Although our schemes have not done very well over the last one and a half years, we are confident that our philosophy will provide above market returns to investors, going forward.
[04:59:52 PM] => KBC: How is your portfolio spread?
[05:01:23 PM] => SS: We have a well diversified portfolio in all our schemes where as of now we are overweight on technology, engineering and automobiles sectors and are underweight on petrochemicals, oil, consumer goods and pharmaceuticals segments.
[05:02:22 PM] => AG 45: Are you coming out with any new schemes in the near future?
[05:03:52 PM] => SS: We are thinking about a number of ideas at this point of time which would be able to fill up unfulfilled segments in the market. However, this would take some more time to fructify.
[05:04:24 PM] => mahesh652000: Please suggest low risk scrips for medium term investment.
[05:05:53 PM] => SS: I would not be able to make individual stock recommendations.
[05:07:16 PM] => MK23: What is the future of US-64?
[05:07:57 PM] => SS: US-64 has been provided support by the government. So, in the near term, investors who are invested in the scheme do not carry any risk. However, on the longer-term, investors have to evaluate the scheme on investment management skills and the movement of its NAV.
[05:08:58 PM] => Mano-kul: Which IT scrips look good short-term?
[05:09:49 PM] => SS: I would not be able to make individual stock recommendations.
[05:11:29 PM] => HDas: As a fund manager, how do you go about choosing scrips for investing?
[05:12:47 PM] => SS: I have a bottoms up approach of investing where each stock is chosen for investment on the basis of the company fundamentals irrespective of the sector to which it belongs. Typically, companies would be selected on the basis of quality of management, sustainability of the business model and earnings, return ratios of the company, the degree of transparency shown by management, the company`s price to earnings ratio, the liquidity of the stock on the bourses and, most importantly, the company`s free cash flow generation. Typically, I like to invest in growth stocks which are available at cheap valuations.
[05:13:40 PM] => laly_basu: Do you think the recent Tata Finance scam will affect Tata Mutual Fund schemes?
[05:14:45 PM] => SS: No, I do not think so.
[05:16:08 PM] => Nlucky2002: How does the market look in for future?
[05:20:27 PM] => SS: Indian markets today are trading at valuations which are nearly at their historical lows. However, the upmove from current levels has been hampered by the slow pace of the disinvestment programme, the weak performance of global equity markets and the possibility of a war in the Middle East. Markets had stabilised and started moving up in April, however, the failure of the monsoon has had an adverse impact on the markets. Overall, the future in the near-term does not look too bright.
[05:21:29 PM] => Vivekkirkire111: I have bought 100 zee tele. Do i hold or sell?
[05:22:44 PM] => SS: It is advisable to hold at current levels as in terms of the programming mix of the company as well as expected earnings growth the future outlook is positive.
[05:24:27 PM] => Acharter: How does TISCO look at 122?
[05:25:35 PM] => SS: I would like to avoid commenting on individual stocks.
[05:26:34 PM] => pvkca: How do you perceive the postponement of the divestment decision of HPCL/BPCL? Is this a setback to the reforms process?
[05:27:15 PM] => SS: Yes this is a big setback to the reforms process and is likely to have an adverse impact on foreign funds flow into the country as well as the perception of India.
[05:28:05 PM] => Baachu: What will happen to the stock market after today's beating taken by PSUs?
[05:28:42 PM] => SS: I think the markets should probably stabilise, going forward. Investors will still await some clarity on the PSU divestment decision for oil companies in particular and other PSUs in general as to whether the government will go ahead with their divestment. Overall, non-PSUs should be stable and could see some appreciation going forward.
[05:29:18 PM] => Simasab: In light of the slowdown in disinvestment, FII selling and the Middle East crisis, what is the outlook of Indian markets?
[05:30:18 PM] => SS: I have already answered a similar question earlier. Please refer to that.
[05:30:31 PM] => Myiris: That's the end of the chat session for today.
[05:31:16 PM] => Myiris: Thank you all for logging on.
[05:32:23 PM] => Myiris: We thank Mr Sandip Sabharwal of SBI Mutual Fund for his time and valuable inputs.
[05:33:23 PM] => Myiris: We thank Mr Sandip Sabharwal of SBI Mutual Fund for his time and valuable inputs.
[05:34:37 PM] => Myiris: We will be back with more at Chat Masala.
[05:35:30 PM] => Myiris: Till then its Bye from us.
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