Top 5 Stocks Held by Dolly Khanna Under Rs 250

In financial markets, many people want to be in the limelight. On the other hand, a few prefer to stay out of the limelight.

One name that crosses my mind who opts to stay out of the media glare, yet shines bright, is Dolly Khanna.

Often referred to as the "Female Rakesh Jhunjhunwala of India" Dolly Khanna's long-term investment portfolio boasts returns that even seasoned fund managers find hard to match.

Who is Dolly Khanna?

Dolly Khanna has been a prominent figure in the Indian stock market since 1996.

Dolly Khanna's story is incomplete without mentioning her husband, Rajiv Khanna. Many believe Rajiv epitomises their successful investment journey. While the investments are in Dolly's name, her husband, Rajiv Khanna, manages the portfolio.

They operate as a team, with Rajiv handling the research and decision-making while Dolly is the face of their investments. The Khannas transitioned from running a successful rain-proof fabric business in Chennai to investing full-time in the stock market.

Rajiv and Dolly Khanna's investment strategy is straightforward - they invest in companies whose products they use. From Fem Bleach to Hawkins Cookers and Utilite Butter, their portfolio consists of brands that are household names.

This approach aligns with the advice from investment guru Peter Lynch, who advocates for investing in companies whose products you understand and use.

Today, Dolly Khanna's portfolio is diversified across various sectors, including small and mid-cap holdings in textiles, pipes, steel, breweries, and distilleries. This diversity ensures a balanced risk and reward ratio.

In this article, we'll look at the top stocks she holds which are priced under Rs 250.

#1 Ujjivan Small Finance Bank

Ujjivan Small Finance Bank is a mass market-focused bank in the country, catering to financially unserved and underserved segments and committed to building financial inclusion in India.

Dolly Khanna holds 844 million (m) shares of Ujjivan Small Finance Bank as of the June 2024 quarter.

Here's how the stock price has moved over the past 1 year.

Ujjivan SFB is persistently striving to pursue innovation to adapt to the changing dynamic landscape of modern finance. It has launched UPI Lite to allow small ticket-size payments of up to Rs 2,000 through any third-party UPI application without the need to enter the UPI PIN.

The banks' future-ready loan origination system launched in the first quarter of FY25 is going to help boost the working capital business scale-up and have a positive impact on various critical metrics like productivity, turnaround time, and first-time-right.

In addition, increased focus on enhancing product offerings and investments in new-age LOS (Loan Origination System) and LMS (Loan Management System) will be augmented by key API integrations, ensuring improved business volumes.

To know more, check out Ujjivan SFB financial factsheet.

#2 SOM Distilleries and Breweries

SOM Distilleries & Breweries is a prominent manufacturer of alcoholic beverages. The company specializes in producing beer and blending and bottling Indian Made Foreign Liquor (IMFL).

Its diverse product portfolio includes beer, rum, brandy, vodka, and whisky, catering to a wide array of consumer preferences.

The company has three key brands - Hunter, Black Fort, and Power Cool, each achieving sales volumes exceeding 1 million (m) cases annually, reflecting their strong consumer demand.

Dolly Khanna holds 337 m shares of SOM Distilleries as of the quarter ended June 2024.

Here's how the stock price has moved over the past 1 year.

During the current year, the company's IMFL segment has shown robust growth with a 14% increase in volume.

The company's beer realisation for the first quarter of FY25 was Rs 550 per case compared to Rs 559 in the first quarter of FY24, influenced by higher sales of its flagship product Power Cool in Madhya Pradesh and Karnataka.

The company has significantly improved its balance sheet, with the net debt reducing to Rs 1,400 m as of 30 June 2024.

The company has also shown a substantial 43% increase in the core beer segment, its star product Hunter, Black Fort, and Power Cool have been key drivers of this success.

Som Distilleries recently introduced Legend Beer in Karnataka and is going to launch Woodpecker in Bangalore, to further strengthen its product offerings and market presence.

The company's focus remains on enhancing market share in its key markets and increasing its presence in high-growth markets like Rajasthan, UP, Jharkhand, and Delhi.

To know more, check out Som Distilleries financial factsheet.

#3 Mangalore Chemicals & Fertilisers

Mangalore Chemicals and Fertilizers is primarily engaged in the manufacture, purchase, and sale of fertilizers. It is a subsidiary of Zuari Fertilisers and Chemicals Limited, an Adventz Group.

Dolly Khanna holds 216 m shares of Mangalore Chemicals and Fertilizers as of the quarter ended June 2024.

Here's how the stock price has moved over the past 1 year.

Recently, the CCI approved the amalgamation of Mangalore Chemicals with Paradeep Phosphates Ltd.

The merged entity became one of the largest integrated private-sector fertilizer companies in India, with a manufacturing capacity of 3.6 m metric tonnes per annum.

Going forward, the company plans to increase the production capacity of ammonia, urea, DAP and NPK fertilizers, and sulfonated naphthalene formaldehyde (SNF)/polycarboxylate ether (PCE).

Coming to financials, the company's revenue from operations in FY24 jumped to Rs 37.9 bn as compared to Rs 36.4 bn for FY23. Its operational performance remained robust with continuous operation of ammonia and urea plants, and phosphatic production based on market demand.

The net profit for FY24 was Rs 2.4 bn as compared to Rs 1.7 bn for FY23.

The company benefited from favourable monsoon conditions, which positively impacted agricultural activities and business growth.

The company has delivered good profit growth of 35.3% CAGR (compounded annual growth rate) over the last 5 years.

As of June 2024, the promoter holding in MCFL increased to 60.62%, while the Indian public holding increased to 24.17%.

The company has continued with new product variants for applications in newer areas to improve plant utilisation, and de-risk its focus on the construction chemical industry.

To know more, check out Mangalore Chemicals financial factsheet.

#4 Deepak Spinners

Incorporated in 1986, Deepak Spinners is a manufacturer of synthetic staple fibers yarn, man-made fiber blended yarn.

Deepak Spinners exports to many countries, including the Middle East, Syria, Turkey, Belgium, and the United States. DSL's customers have long-standing relationships with the company, which is known for its high standards of quality, trust, and satisfaction.

It has been in the spinning business for over three decades and has a diversified base of customers, including Raymonds Ltd, Tusha Textiles Pvt Ltd, and Siyaram Silk Mills Ltd.

Dolly Khanna holds 74,834 shares of Deepak Spinners as of the quarter ended June 2024.

Here's how the stock price has moved over the past 1 year.

Coming to its financials, the company's margins have been volatile over the years due to fluctuating raw material costs. The company has been trying to mitigate the price volatility risks by improving its inventory management.

Going further, the company has a planned capex of around Rs 800 m to be completed by FY25. It plans to add more solar power capacity in the coming 2 years. It is also undertaking capex for efficiency improvement and for increasing value addition by expanding the dyeing capacity.

To know more, check out Deepak Spinners financial factsheet.

#5 KCP Sugar and Industries Corporation

KCP Sugar and Industries Corporation specialises in the production of sugar, industrial alcohol, ethanol, bio-fertilisers, carbon dioxide, calcium lactate, and incidental cogeneration power.

The company operates through several segments including sugar, chemicals, power & fuel, engineering, and others.

Geographically, it serves both domestic and international markets. Apart from sugar manufacturing, KCP Sugar also engages in the production and marketing of rectified spirit, extra-neutral alcohol, ethanol, and organic manure. It stresses integrating sugar production with electricity generation and alcohol manufacturing.

Dolly Khanna holds 1,610,638 shares of KCP Sugar as of the quarter ended June 2024.

Here's how the stock price has moved over the past 1 year.

Going forward, the company expects a boom in its revenue driven by the use of the growing call for sugar and ethanol in each home and worldwide market.

To know more, check out KCP Sugar financial factsheet.

Snapshot of Dolly Khanna Stocks on Equitymaster Stock Screener

Here's a snapshot of some other stocks that Dolly Khanna holds -

Conclusion

The Dolly Khanna story is a testament to the power of resilience, strategy, and a bit of luck in the stock market.

While it's interesting and potentially helpful to look at what successful investors like Dolly Khanna are doing, it's important to make investment decisions based on your financial goals and situation.

The stock market can be unpredictable, and what works for one person might not be the best strategy for everyone.

That's it for today, happy investing!

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...