Ace Investor Dolly Khanna Enters This Smallcap with a 1.5% Holding

The earnings season is once again in full swing on Dalal Street, with investors closely tracking revenue and profit numbers.

But beyond the headline figures, many market participants also keep an eye on shareholding patterns-especially for signs of fresh entries or exits by ace investors.

After all, the art of investing isn't just about numbers; it blends analytical skills with human judgment, continuous learning, and disciplined execution to grow and protect wealth over time.

That's why many investors follow the moves of seasoned investors like Dolly Khanna, Ashish Kacholia, and Vijay Kedia, to gain insights from their stock picks.

In this article, we take a closer look at one such recent move by Dolly Khanna, picking up stake in a smallcap company.

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 Smallcap Stock did Dolly Khanna Buy and Why?

The stock in focus is Coffee Day Enterprises.

Coffee Day Enterprises Ltd is in the business of Coffee and related businesses, Integrated multimodal logistics, financial services, leasing of commercial office space and more.

According to the latest shareholding filing, Dolly Khanna's name has appeared on the latest shareholding pattern of the smallcap stock Coffee Day Enterprises, as she now holds 32.78 lakh shares of the company, representing a 1.55% equity stake, at the end of June 2025.

As of 15 July 2025, she holds equity worth Rs 119 million (m).

The ace investor's name was not included in the shareholding pattern at the end of the March 2025 quarter. This means that either this is a fresh infusion of funds or Khanna previously held less than 1% equity stake in the company, which does not require any disclosure.

While we don't know the exact reasons for her investment in this stock, here are a few factors that could explain this decision...

#1 Robust Result

For the March 2025 quarter, Coffee Day Enterprises reported a revenue from operations of Rs 2,680.3 m, growing around 7% from Rs 2,506.5 m in Q4 FY24.

The company reported a consolidated net loss of Rs 1141.6 m for the March 2025 quarter, against Rs 2,964 m in the year-ago period (Q4 FY24).

Coffee Day's total income, which includes other income, rose 8.35% to Rs 2,792.3 m during the period under review.

In FY25, CDEL's total consolidated income was marginally up to Rs 11,256.4 m.

For the entire year, Coffee Day reported a consolidated net loss of Rs 1,432 m for FY25, against Rs 3,074.3 m in FY24.

This marked improvement in performance could be one of the key reasons why ace investor Dolly Khanna chose to pick up a stake in the company.

#2 Debt Reduction Drive

The company had a debt of more than Rs 70 billion (bn) and worked actively to decrease the debt. In the year 2020, the company sold the Global Village Tech Park to Blackstone for Rs 28 bn; they also liquidated their non-core assets and investments, focusing on optimisation and shutting down its loss-making outlets.

Recently, NCLAT had set aside the Insolvency proceedings against the company, which was filed by IDBI Trusteeship Service Limited. The company also made an announcement that it will be settling its Outstanding debt of Rs 2.1 bn with the debenture holders.

The repayment will be carried out in three tranches, including Rs 550 million from the sale of 12.41% pledged and invoked shares of Coffee Day Global Ltd to a third party.

With the Audit Committee and Board approving the draft settlement agreement on 17 March 2025, this move is part of the company's focused strategy to reduce debt and restore financial health. Such visible signs of recovery could be a key reason why Dolly Khanna found merit in picking up a stake in the company.

What Next for Coffee Day Enterprises?

As highlighted in Coffee Day Enterprises' FY24 annual report, the coffee space in India has been buzzing with fresh energy. In recent years, there's been a noticeable shift in consumer preferences, with rising demand for premium, artisanal brews and new-age experiences.

A growing number of coffee start-ups and direct-to-consumer brands are jumping in to serve this evolving taste.

Behind this wave is a young, aspirational India with higher disposable incomes and a desire for lifestyle-driven choices.

The lockdown years only amplified this trend, with people discovering gourmet food and beverages at home, and digital platforms making it all just a tap away.

This changing landscape could work in Coffee Day's favour, offering it a fresh chance to reconnect with consumers.

How Shares of Coffee Day Enterprises have Performed Recently

The share price of Coffee Day Enterprises has gained 10% today. In 2025 so far the stock is up 68%.

Over the past one year, shares of the company have declined by 24%.

The company touched its 52-week high of Rs 54.4 on 26 July 2024 and its 52-week low of Rs 21.4 on 24 February 2025.

About Coffee Day Enterprises

Cafe Coffee Day (CCD) is an Indian multinational chain of coffeehouses headquartered in Bengaluru, Karnataka. It is a subsidiary of Coffee Day Enterprises.

Internationally, CCDs are present in Austria, Czech Republic, Malaysia, Nepal, and Egypt.

Cafe Coffee Day Global is a Chikkamagaluru-based business which grows coffee in its own estates of 20,000 acres. It is the largest producer of arabica beans in Asia, exporting to various countries including US, Europe, and Japan.

V G Siddhartha started the cafe chain in 1996 when he incorporated Coffee Day Global, which is the parent of the Coffee Day chain.

For more details about the company, you can have a look at Coffee Day Enterprise company fact sheet and Coffee Day Enterprise quarterly results on our website.

For a sector overview, read our hotels sector report.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...