Dolly Khanna Dumps Stake in this Beaten Down Microcap Stock

The busiest phase for the markets is back with the onset of the earnings season.

This is the period when listed companies open their books every quarter, reporting key details such as sales, profits, costs, and management outlook.

For investors, these numbers serve as a reality check on whether the growth narrative of a company is still intact.

While many investors closely track the financial performance, one aspect that consistently draws the attention of retail participants is the shareholding pattern.

Every quarter, companies are required to disclose details of shareholders holding more than a 1% stake. These disclosures often feature the names of well-known or 'superstar' investors, making them a key point of interest in the earnings season.

A section of market participants closely follows these investors and, in some cases, attempts to mirror their investment decisions in the hope of generating similar returns. Among the most tracked names in this space is ace investor Dolly Khanna.

According to shareholding disclosures for the December 2025 quarter, the superstar investor has sold her stake in one beaten-down microcap stock.

Who is Dolly Khanna?

Dolly Khanna is a Chennai-based investor who is known for picking lesser-known midcaps and smallcaps. She has been investing in stocks since 1996.

Dolly Khanna's portfolio, which is managed by her husband, Rajiv Khanna, is usually inclined towards more conventional stocks in manufacturing, textile, chemical, and sugar stocks.

Which Stock did Dolly Khanna Sell and Why?

Dolly Khanna sold her stake in Prakash Pipes.

Prakash Pipes specialises in the manufacturing of PVC pipes and fittings. The company's product range includes agri pipes, column pipes, plumbing pipes, casing pipes, SWR Pipes, garden pipes, and related fittings.

According to the December 2025 quarterly update, Dolly Khanna's name is missing.

This means she may have completely exited the stock or may have a small holding left.

Every quarter, companies have to report their shareholding data and the list of shareholders who hold above 1% stake.

Dolly Khanna added this stock to her portfolio in the December 2021 quarter.

While we don't know why she exited the stock, there are some reasons that we can guess.

#1 Consecutive Weak Quarter

The company reported back-to-back weak performances in the June and September 2025 quarters.

In the June 2025 quarter, revenue came in at Rs 2,034 million (m), almost flat compared to Rs 2,048 m in the same quarter last year.

The slowdown became more visible in the September 2025 quarter, when revenue slipped to Rs 1,810 m from Rs 2,002 m a year ago.

The stress was even more evident on the net profits. Net profit for the June 2025 quarter fell sharply to Rs 103 m, down from Rs 254 m in the June 2024.

This pressure continued into the September 2025 quarter, with net profit declining to Rs 94 m compared to Rs 243 m in the year-ago period.

The back-to-back drop can be one of the reasons why the ace investor might have exited the stock.

#2 FII Selling

Another key reason behind the exit appears to be consistent FII selling over the past four quarters. Foreign Institutional Investors have been trimming their stake in the company since the December 2024 quarter.

FII holding stood at 1.67% in the December 2024 quarter, which declined to 1.29% in the March 2025 quarter. The selling trend continued in the June 2025 quarter, with FII stake reducing further to 1.15%, before falling sharply to 0.54% in the September 2025 quarter.

What Next?

The long-term outlook for the Indian PVC pipes industry remains positive, with the market expected to grow from around US$ 5.25 billion (bn) in 2024 to nearly US$ 7.43 bn by 2030, translating into a CAGR of about 5.8%.

This growth is being driven by rapid urbanisation, rising construction activity, and strong government thrust on infrastructure development through initiatives such as Housing for All, the Smart Cities Mission, and other large-scale public spending programmes.

At the same time, the Indian flexible packaging industry offers significant headroom for growth.

The sector is valued at US$20.41 bn in 2025 and is projected to expand at a healthy CAGR of 11.46% between 2025 and 2030, supported by rising consumption, changing packaging preferences, and increasing focus on convenience and sustainability.

Against this backdrop, the company continues to strengthen its domestic presence through product innovation and expansion of its distribution network.

Additionally, it sees meaningful opportunities to scale up exports, particularly to markets that are increasingly favouring eco-friendly products and sustainable manufacturing practices.

How shares of Prakash Pipes have performed recently

In the past month, the stock is down over 15%. While in the past year the stock is down over 53%.

The company touched its 52-week high of Rs 483.8 on 20 January 2025 and its 52-week low of Rs 209.2 on 16 January 2026.

About Prakash Pipes

Prakash Pipes Limited is a leading manufacturer of high-quality PVC pipes, fittings, and flexible packaging solutions in India.

It manufactures a diverse range of products, including agri pipes, column pipes, plumbing pipes, casing pipes, SWR pipes, garden pipes, and related fittings, and more.

The company has also expanded into flexible packaging, operating a state-of-the-art facility in Kashipur, Uttarakhand.

For more details, see the PRAKASH PIPES company fact sheet and quarterly results.

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