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.