Chennai-based marquee investor Dolly Khanna, whose portfolio is entirely managed by her husband Rajiv Khanna, is known for spotting smallcap gems on Dalal Street.
March quarter shareholding data shows Khanna increased stake in at least six smallcap stocks during the quarter, as the broader market weakened in t he latter two months after a nearly 1 per cent spike in January.
Khanna entered the brewer with a stake of 1.04 per cent as of March 31, 2018. The company’s market capitalisation was above Rs 600 crore as of April 13 this year against Rs 218 crore a year ago. The stock has been on a high, having jumped 189 per cent to Rs 348.40 from Rs 120.65 in last one year. The company aims to double ENA (extra neutral alcohol) capacity in the coming years, according to its annual report. A mere 50 per cent investment in assets will double its manufacturing capacity and strengthen its cost efficiency, the company claimed. It has emerged as one of the most competitive grain-based ENA manufacturers in India.
Butterfly Gandhimathi Appliances
Khanna bought 27,487 shares in the company during the quarter gone by. As a result, her stake has increased from 1.26 per cent at the end of December 2017 to 1.42 per cent at the end of March 31, 2018. The company’s share price has risen 157 per cent to Rs 924.10 as of April 13, 2018 from Rs 360.27 on April 13, 2017. Butterfly is a manufacturer of domestic kitchen and domestic electrical appliances. Mutual funds, including Sundaram Mutual Fund and IDFC Sterling Equity Fund, held over 1 per cent stake in the company as of March 31, 2018.
IFB Agro Industries
Data available with stock exchanges showed Dolly Khanna was holding 1.29 per cent stake in the company at the end of March quarter against 1.27 per cent at the end of December quarter. In last one year, the stock has risen 92 per cent to Rs 840.35 as of April 13 from Rs 437.10 on the same day last year. The company is engaged in the business of manufacturing alcohol, bottling of branded alcoholic beverages, as well as processed and packed marine foods both for domestic and export markets.
Share price of Rain Industries has rallied more than 3 times in last one year. The scrip has risen 231 per cent to Rs 351.35 from Rs 106.10 during this period. Khanna bought over 3 lakh shares in Rain Industries during the quarter gone by. As a result, his stake has increased to 2.66 per cent from 2.57 earlier. India Ratings and Research recently upgraded Rain Industries’ long-term issuer rating to ‘IND A’ from ‘IND A-’ with a stable outlook. The upgrade reflects an improvement in the credit metrics of Rain Industries in 2017. Meanwhile, the positive outlook reflects expectation of Ebitda margin sustaining above 16 per cent and free cash flow turning positive and being consequently utilised for reduction in the overall debt.
Khanna added 22,000 shares of the company in her portfolio in March quarter. Her stake in Srikalahasthi Pipes increased to 1.49 per cent in Q4FY18 from 1.44 per cent at the end of December. The stock is down 8 per cent in last one year at Rs 353.50 as of April 13, 2018 from Rs 385.65 on April 13, 2017.
Tata Metaliks has evolved from a pig iron manufacturer into a significant player in ductile iron (DI) pipes in last six years. The scrip has delivered over 20 per cent return to investors in last one year. Khanna has increased her holding in the company from 1.08 per cent as of December 31, 2017 to 1.19 per cent as of March 31, 2018. The recent uptrend in DI pipes and higher margin have prompted management to increase DI pipes revenue share from 35 per cent in FY14 to around 60 per cent in FY17.
Centrum Broking said valuations in certain pockets have now turned attractive from a longer-term perspective. “We maintain preference for Kirloskar Ferrous, Tata Metaliks, Tata Sponge and Orient Refractories in the mid-cap metal space.”
Source: Economic Times