Dolly Khanna
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Dolly Khanna    
19 Apr 2018, 08:42AM
Superstar investor Dolly Khanna may be the greatest finisher of all time click to expand

By Suhani Adilabadkar

Rain Industries caught Dalal Street’s fancy when Dolly Khanna emerged as its major investor, with 1.27% stake in the March quarter filings of 2017. The stock rallied 4% by the end of the day, closing at Rs. 122. Rain Industries produces crucial raw materials, calcined petroleum coke & coal tar pitch essential for the manufacture of aluminium, graphite, carbon black, refractory and titanium dioxide. From then, it was a ride up the chart - this lesser known stock till 2017 has tripled in value.  Rain industries Ltd is the biggest beneficiary of ace investor Dolly Khanna’s priced portfolio - she holds 2.66% of the stock as of March 2018 (over Rs. 304 crore). 

  • Dolly Khanna knows when to exit: smart at both sells and buys
  • Brought attention to Rain Industries when the Khannas added it to their portfolio
  • Falls in molasses price driving recent portfolio investments in alcohol stocks
  • Has a well diversified portfolio, across metals, auto, agro, textiles & chemicals
  • Cut investments in sugar as the industry took a beating among falling prices

Initial focus on small and midcaps

Chennai based, Khanna duo, Dolly Khanna and her husband Rajiv Khanna’s stock investments began with the sale of their Kwality Icecream business to Unilever. Though it started as a hobby, Dolly’s investments in various small and midcaps have turned into multibaggers over the years.  The first one was Hawkins Cookers which is assumed they bought at around Rs. 150 and sold at around Rs. 4000. When market veterans were licking wounds inflicted by the later Hawkins Cookers debacle, Dolly Khanna had already exited with flying colors. There is a list of such stocks - Amara Raja Batteries, TTK Prestige, Cera Sanitaryware, RS Software which have been bought in and exited at the right time by the Khannas, delivering multifold returns.

Increasing investments in alcohol stocks

Rajiv Khanna had once compared stock investing with tennis played on different courts. What he implied was the significance of understanding the underlying market condition and acting accordingly, whether for the long or short term. This seems to be true with respect to recent additions to their portfolio, Radico Khaitan, Associated Alcohols and Som Distilleries, all liquor stocks. The underlying reason behind the choice of these stocks is the fall in molasses price which is a major raw material and constitutes 40-70% of sales for most of the top breweries in India. Molasses index has corrected 45% since the beginning of 2018. Thus the falling raw material cost has improved margins leading to steady rise of stock price over the previous few quarters. Radico Khaitan & Associated Alcohols have jumped three times and Som Distilleries has doubled over the last one year.

The Portfolio Balancing Act

Dolly Khanna’s portfolio is well diversified among metals, auto, agro, textiles & chemicals. The largest chunk of her portfolio belongs to Rain Industries, NOCIL, RSWM, Ruchira Papers , Srikalahasthi Pipes Ltd and Thirumalai Chemicals. Added to this list are the liquor stocks and textile stocks namely Trident, Nandan Denim, Nitin Spinners, and financial services names such as Emkay Global & Manappuram Finance.

The portfolio is further diversified by the likes of Nilkamal, Liberty shoes, Heritage Foods, Asian Granito to name a few. All these stocks are not heavyweights moving the BSE Sensex everyday but fundamentally strong companies.

The Art/Science of Investing

Major portfolio changes so far for Khanna have been with respect to the textile and sugar industry. Textile industry has been impacted by GST, lower duty drawback rates and falling exports. On the same lines, after two bullish years, sugar industry has been impacted by a bumper crop both in India and Brazil leading to lower sugar prices and poor margins for the industry. Dolly Khanna has thus been shrewdly reducing her shareholding in RSWM, Nitin Spinners and Dwarikesh Sugar. 

Multibagger 3D Effect

There is a common thread running through the entire portfolio and that is the strong fundamentals of Khanna’s stock picks. Though sectors have been selected on the basis of market conditions which subsume the economic situation, both domestic and global, stocks exhibit strong financial fundamentals with stable ROE, high asset turnover ratios and very low debt which translates into multibaggers in the long run. So what appears to the investing community as a multibagger stock is actually the work of a keen eye, vigilant ear and a simple financial thought process.

Suhani Adilabadkar is a Research Analyst registered with SEBI ((INH200003240)) She has done PGDBA (Finance), MS (Finance) and a Fellowship from Insurance Institute of India. She maintains a blog at oasisfundamentals.blogspot.in.

Disclaimer: Investing in stock markets is subject to market risks. Neither Trendlyne nor the author is liable for losses including consequential losses, claims, or expenses incurred by third parties from following research reports and advisory analysis available on Trendlyne.

Dolly Khanna    
11 Apr 2018
Superstar investor Dolly Khanna ups stake in Rain Industries, Butterfly Gandhimathi click to expand

Superstar investor Dolly Khanna, who has a portfolio worth over Rs. 460 crore, has upped her investment in key stocks during the March quarter, including Rain Industries (increased stake by 0,09% for a total of Rs. 331. 64 crore) and Butterfly Gandhimathi (0.16% increase in stake for a total of Rs. 13.08 crore). These two stocks have been multibaggers for Khanna, delivering 100%+ returns over the past six months. She has also newly invested 1.04% or Rs. 6.29 crore worth of stake in Associated Alcohols and Breweries

To track the changes in her portfolio as per the newest disclosures, click here.

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Dolly Khanna    
11 Apr 2018
Business Standard
The stock hit a record high of Rs 340, up 12%, rallied 37% thus far in the month of April, as compared to 3% rise in the S&P BSE Sensex.
Dolly Khanna    
09 Feb 2018
Dolly Khanna is insulating herself from the worst drops in her portfolio click to expand

The investor couple Dolly Khanna and Rajiv Khanna are known for their smart stock picks and eye for future multibaggers. One additional factor that is setting them apart in the current choppy market is their knowhow on when to sell. Investors tend to hang on to stocks longer than they should, hoping that prices will recover. But sometimes it takes a bear market for stocks to reach a non inflated, fair valuation.

Dolly and Rajiv Khanna have done some pruning to their portfolio over the last quarters that have limited the impact of stocks seeing the worst share price drops now. With the exception of IFB Agro, the Khannas either reduced or had holdings below 1% in the 10 worst performing stocks over the last month in their portfolio. 

Stock nameMonth Change in Share Price (%)Holding Change in DK's Portfolio (%) (from September to December)
R. S. Software -23.08%Below 1%
Amarjothi Spinning Mills-21.23%Below 1% (first time)
Dwarikesh Sugar -20.26%-0.02%
IFB Agro Industries -19.99%+0.13%
Shreyans Industries-19.47%Below 1% (first time)
Trident Limited-19.23%Below 1%
ADF Foods-18.7%Below 1%
Nahar Industrial Ent. -17.53%Below 1%
Nandan Denim -17.48%-0.13%
Heritage Foods -16.72%Below 1%

 

Dolly Khanna    
06 Feb 2018
Economic Times
No one's spared: Jhunjhunwala, Dolly Khanna just lost up to 30% of their moneyMany market gurus saw their portfolio stocks plunge in this fall. Some of Jhunjhunwala's portfolio stocks have fallen up to 32 per cent.
Dolly Khanna    
19 Jan 2018, 11:29AM
Dolly Khanna reportedly amps up investments in Prakash Industries, cuts it elsewhere click to expand

Prakash Industries has had quite a journey in the last six months - from being branded as a "shell company" by SEBI in August 2017, (which SEBI then retracted after re-examining the company) to becoming a hot favorite among superstar investors, including Rakesh Jhunjhunwala, Mukul Agrawal and now reportedly Dolly Khanna.

Media reports from insiders say that she has added Prakash Industries to her portfolio, although this has yet to be reflected in the shareholder filings. Khanna has cut some old favorites from her portfolio, including UP-based firm Dhampur Sugar, yarn company Nitin Spinners, and Sterling Tools and Thirumalai Chemicals. She has joined Ashish Kacholia in upping her stake in Butterfly Gandhimathi, and also bought more shares in Rain Industries and Gujarat Narmada Valley Fertilizers

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Dolly Khanna    
12 Jan 2018
Dolly Khanna ups stake in Rain Industries, IFB Agro click to expand

Dolly Khanna's portfolio has seen some changes in the past months, and as of the end of the December quarter, the superstar investor has increased her bets in petrochem company Rain Industries and IFB Agro. Rain Industries has been part of Khanna's portfolio since June 2017, and has increased by more than 250% in share price over 6 months. Khanna has increased her stake by 0.53% as of the December filings, bringing up her total stake in Rain to 2.57%, worth Rs. 384.3 crore. 

Khanna has also increased her portfolio stake in IFB Agro by 0.13%, bringing her total stake to 1.27%, worth around Rs. 10 crore. She has reduced her stake in Sterling Tools, Nandan DenimTata Metaliks, Dwarikesh Sugar and Ruchira Papers. Her stake in Amarjothi Spinning Mills has fallen below 1% for the first time. 

1 Comment
sivagct@gmail.com The message seems contradictory related to Dwarikesh sugar ...The below message is also from Trendlyne...
"Khanna also reads as bullish on sugar, raising investments in Dhampur Sugar Mills and Dwarikesh Sugar Industries. India's sugar production has been sharply up this year in the first 45 days of the crushing season, according to the Indian Sugar Mills Association - production is 75% higher compared to the same period last year."
29 Jan 2018  Like
Dolly Khanna    
28 Nov 2017
Business Standard
Rain Industries, Emkay Global Financial, PPAP Automotive, IFB Industries, NOCIL, Thirumalai Chemicals and Tata Metaliks were up in the range of 150% to 550%.
Dolly Khanna    
22 Nov 2017
Dolly Khanna's shareholding changes: in which stocks are the bets rising? click to expand

Superstar investor Dolly Khanna has tended towards investments in the chemicals, textiles, sugar and metals sectors. More recently in her September shareholding disclosures, Khanna raised investments in chemicals firm Rain Industries by 0.77%, bringing her portfolio holding in the company to 2.04% in total, worth Rs. 212.6 crore. Rain delivered strong results in its most recent quarter and analysts have remained bullish about the firm, citing a strong outlook for its carbon products. 

Khanna also reads as bullish on sugar, raising investments in Dhampur Sugar Mills and Dwarikesh Sugar Industries. India's sugar production has been sharply up this year in the first 45 days of the crushing season, according to the Indian Sugar Mills Association - production is 75% higher compared to the same period last year. Additionally, both Dhampur Mills and Dwarikesh Sugar are based out of Uttar Pradesh, which has dislodged Maharashtra as the no. 1 sugar producing state last year, thanks to a productivity boom that increased cane output by an additional 20 tonnes on average per hectare. The Co238 sugarcane variety that has boosted this productivity came from the Comibatore research institute, and has delivered bumper output for the state's farmers. 

 These three stocks Khanna has raised investments have delivered triple-digit returns over the past one year - Rain Industries is up over 541%, while Dhampur Sugar and Dwarikesh Sugar have risen over 150% and 130% respectively in the past one year.  

Dolly Khanna    
07 Nov 2017
Dolly Khanna pick Rain Industries, is gaining from China's pollution norms click to expand

Rain Industries, one of the picks in superstar investor Dolly Khanna's portfolio, has been in the radar of analysts looking at multibaggers for a while now. The company gained attention and a buy call from IDBI Capital in December 2016, much before Motilal Oswal initiated coverage on the stock, as it did this month.

Rain is globally the second largest producer of calcine pet coke (CPC) and coal tar pitch (CTP), which are used in aluminium smelting. Rain has long standing relationships with suppliers to source raw materials including green petroleum coke (GPC) and coal tar. Over 2016 and 2017, the company focused on improving its supply and distribution chain, setting up a greenfield distillation unit in Russia, and improving its supply of coal tar from Europe. Another significant factor impacting this company is political: China's stringent pollution norms is impacting its role as a supplier for key industries, including steel and coal. Calcine pet coke (CPC) production is another area that has been impacted by pollution rules. This has turned China into a net CPC importer, and put Rain Industries in a strong position to gain advantage, both by taking over as a key producer and gaining from higher CPC prices.

There are therefore jewels on the ground for the taking - now aluminum smelting is also set to grow outside China, expanding Rain Industries' base of clients. With both demand and prices rising, its no surprise that Dolly Khanna upped her stake in this company in the September quarter by 0.77%. Her holding in the company is now valued at over Rs. 221 crore.

Rain saw a new year high in share price today. 

1 Comment
nenumal A great news; useful and important points to extend a support to increase in the share value.
28 Jan 2018  Like