This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Nov 24, 2021 - This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake

Nov 24, 2021

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake

Since 18 November last week, shares of Ajanta Soya are on a tear. From trading at Rs 139.55, they have skyrocketed to Rs 218 today.

That's a 57% gain in just three trading sessions!

But what has triggered such a sharp rally in the stock of this edible oil company?

It has something to do with Dolly Khanna that's for sure.

Dolly Khanna bought 1.4 lakh equity shares in Ajanta Soya, or 0.86% stake at Rs 147.72 per share on the BSE, the bulk deals data showed on 22 November.

Following this news, the very next day, shares of Ajanta Soya was locked in 20% upper circuit.

--- Advertisement ---
Automobile Sector's Colossal Disruption Could Make You a Fortune

During any major disruption in a sector, fortunes are created.

And now, we are at the cusp of a major disruption that the automotive sector will experience.

It is the electric vehicles gold rush.

At Equitymaster, we have unearthed a hidden way to ride the 15x EV opportunity so that you could take home potentially life-changing gains in the long run.

You can get all details of the hidden way in our upcoming special online event.

YES, Register Me for FREE
------------------------------

Whenever renowned investors pick up stake in a company, the stock jumps the very next day once the details are disclosed. This is true more often than not.

For instance, just last week, we saw how Sunil Singhania bought stake in TV Today Network and shares spiked the very next day.

Who is Dolly Khanna?

Dolly Khanna is a Chennai based large 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.

Why did Dolly Khanna Invest in Ajanta Soya?

As of September 2021, Dolly Khanna had no holding in Ajanta Soya, shareholding pattern data showed.

Despite the sharp rally seen this year, why did Dolly Khanna bet on this edible oil company?

Shares of the company have already delivered multibagger returns of over 350% in the past year. On a year to date (YTD) basis, they have surged around 250%.

While we don't know why she made a fresh entry in Ajanta Soya, there are some reasons that we can guess...

One reason could be that edible oil prices in the major retail markets across the country have declined recently by Rs 5-20 per kg after various measures, including an import duty cut, by the government. So the branded oil makers have revised the rates for new stock.

Also, domestic edible oil prices have soared in line with global rates which shot up due to reduced availability of edible oils for food use following diversion for biofuel in Indonesia, Brazil, and other countries.

Then there's reasons such as increasing incomes, urbanisation, changing food habits, and higher consumption of processed foods.

FREE Event: Discover Your First Stock for a Potential Rs 7 Crore in Long-term Wealth

In its annual report, the company's management said the continued growth of the Indian food market presents an enormous opportunity for a steady growth in revenues and profits.

Here's an excerpt from the annual report:

  • With the rural India being revisited by marketers through the modern retail (haat) philosophy, the opportunity is huge.

All these reasons combined tend to be positive for Ajanta Soya and will be the key drivers of future consumption growth of edible oil.

Which other companies did Dolly Khanna increase stake in?

During the September quarter, Dolly Khanna bought fresh stake of 1.1% in New Delhi Television (NDTV).

Apart from this, the investor raised holdings in six companies. These were Nitin Spinners, Rama Phosphates, Asahi Songwon Colors, RSWM, NCL Industries, and Rain Industries. Meanwhile, she kept her holding in Polyplex Corporation unchanged.

Company Name June 2021 Holding (%) Sept 2021 Holding (%)
Nitin Spinners Ltd. 1.24 1.64
Rama Phosphates Ltd. 1.77 1.89
Asahi Songwon Colors Ltd. 1.32 1.41
RSWM Ltd. 1.05 1.12
NCL Industries Ltd. 1.75 1.77
Rain Industries Ltd. 1.17 1.18
Polyplex Corporation Ltd. 1.03 1.03
Data Source: Ace Equity

On the other hand, she exited Shemaroo Entertainment and trimmed her stake in scrips like Aries Agro, KCP, Nucleus Software Exports, Mangalore Chemicals & Fertilizers, Butterfly Gandhimathi, Talbros Automotive, and Deepak Spinners.

Company Name June 2021 Holding (%) Sept 2021 Holding (%)
Deepak Spinners Ltd. 2.07 1.57
Talbros Automotive Components Ltd. 1.51 1.25
KCP Ltd. 4.33 4.13
Butterfly Gandhimathi Appliances Ltd. 1.37 1.19
Aries Agro Ltd. 1.49 1.38
Mangalore Chemicals & Fertilizers Ltd. 1.50 1.43
Nucleus Software Exports Ltd. 1.09 1.03
Data Source: Ace Equity

How the stock of Ajanta Soya has performed

Ajanta Soya share price opened the day 10% higher at Rs 203 against its previous close of Rs 183.75.

The stock extended gains as the session progressed and rallied 20% to Rs 219.70, also its all-time high.

--- Advertisement ---
3 "Super Smallcaps" You Didn't Know About

You may not have heard of these 3 "super smallcaps" ever before...

The mainstream press doesn't cover them... Most brokers don't know about them either...

Stocks like these 3 "super smallcaps" only come to your notice when they have rallied by hundreds or even thousands of percent... and are all over the news!

Richa revealed it all during her Super Smallcaps Summit

If you missed this event for some reason, then you can watch the special replay of this event.

Click Here to Watch the Replay...
------------------------------

Over the past one year, shares of the company have surged a massive 370%. On a YTD basis too, they are up over 250%.

chart

To know more, check out Ajanta Soya's latest shareholding pattern.

About the company

Incorporated on 13 January 1992, Ajanta Soya is engaged in the business of manufacturing of Vanaspati and various kinds of cooking oil with applications products for bakery like biscuits, puffs, pastries, and other applications.

In fiscal, Vanaspati & refined cooking oils accounted for 98% of revenues and other by-products and bakery applications accounted for the rest.

The company has a strong portfolio of brands viz. Dhruv, Anchal, and Parv. The brands have a reputable market share particularly in Northern Indian market.

The company's clients include Cremica, Godrej, Britannia, Bikano, Anmol, United Biscuits, Sungold, Harvest Gold, Parle, PriyaGold, PepsiCo, ITC, Haldirams, and others.

To know more about the company, check out Ajanta Soya's financial factsheet and quarterly results.

You can also compare Ajanta Soya with its peers:

Ajanta Soya vs Ruchi Soya

Ajanta Soya vs DFM Foods

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

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...

Equitymaster requests your view! Post a comment on "This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake". Click here!

1 Responses to "This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake"

Ramesh B

Nov 24, 2021

excellent !

Like 
  
Equitymaster requests your view! Post a comment on "This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake". Click here!

More Views on News

What Led to the Massive Surge in the Stock of Jubilant FoodWorks? (Views On News)

Aug 18, 2021

Jubilant FoodWorks hits new high, surges 35% in a month on growth prospects.

Zomato Delivers a Hot Listing. Did You Grab a Bite? (Views On News)

Jul 23, 2021

Zomato scripted history on Friday by becoming India's first unicorn to debut on the stock exchanges.

Jubilant FoodWorks Hits Record High on Strong Sales Recovery in June Quarter (Views On News)

Jul 22, 2021

Jubilant FoodWorks is back in the black, aided by higher revenues despite the second wave disrupting operations.

Varun Beverages Q1 Review: Net Profit Rises Two-Fold; Board Announces 1:2 Bonus Issue (Views On News)

May 4, 2021

Varun Beverages' two-fold jump in profit came on the back of strong volume growth and demand recovery.

Burger King IPO: Should You Subscribe to This QSR Chain Business? (IPO)

Dec 2, 2020

Does the company with one of the fastest-growing QSR chains in India have sound prospects?

More Views on News

Most Popular

Small is Big: The Blueprint to Get Rich with Small-cap Stocks

All you need to know about successful investing in the smallcap space.

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

AJANTA SOYA SHARE PRICE


Dec 1, 2021 (Close)

TRACK AJANTA SOYA

  • Track your investment in AJANTA SOYA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

AJANTA SOYA - HYPERMARCAS COMPARISON

COMPARE AJANTA SOYA WITH

MARKET STATS