Dolly Khanna appears to be a believer in Peter Lynch’s theory that investors should buy what they know. Dolly is obviously a lover of sea food like Prawns, Shrimps etc.
Her recent purchase of a massive chunk of Avanti Feeds, a manufacturer of shrimp feeds etc, was probably dictated by her taste buds. When Avanti Feeds surged and turned into a 5-Bagger, Dolly has turned her attention to IFB Agro.
In the July to September quarter, Dolly Khanna has scooped up a chunk of 1,27,412 shares of IFB Agro. At the CMP of Rs. 286, her holding is worth Rs. 3.64 crore.
According to an “initiating coverage” report from Angel Broking dated 22nd March 2013, IFB Agro Industries (IFB) is primarily present in West Bengal and is engaged in the business of manufacturing alcohol, bottling of branded alcoholic beverages as well as processed and packed marine foods, both for domestic and export markets. It is emphasized that IFB is a major player in the marine business (90% prawns) in West Bengal with presence in domestic as well as export markets. The company also has a tie-up with Thailand’s C.P. Group for supply of feed to farmers. Angel advised a buy on the basis that there is huge potential for IFB Agro’s marine business, given its strong customer base, rising demand for frozen sea food, and overall global economic growth which again will spur demand.
Now, the surprising part is that the steep rise in IFB Agro’s stock price as well as its expansion plans appears to have spooked Angel. In their latest report, they have stated that they are “discontinuing coverage” of the stock. They say:
“IFB stock price has run up in the past few days generating returns in excess of 100% since we initiated our coverage on the company on March 22, 2013 at Rs. 151. The company has announced capex of Rs. 350cr over the next 3-5 years (relatively huge compared to its current market cap of Rs. 296cr) which will result in no dividends being paid over the next two years. The company had undertaken restructuring measures to improve its EBIT margin by selling its IMFL brands and adding capacity but it has failed to achieve the desired results. We are not confident that the large capex will be able to generate ROCE above 20% going forward. At 8.0x its FY2016E PE, we believe that the stock is reasonably valued but the risk-reward ratio remains unfavorable. Hence we discontinue our coverage on the company (from October 9, 2014).”
In this scenario, we are in a difficult position. On the one hand, it cannot be denied that Dolly Khanna’s latest stock picks like Avanti Feeds, RS Software, Mold-Tech Packaging and Premier Explosives have all been dancing to the tune of her magic wand and giving incredible gains to its shareholders. However, at the same time, we cannot ignore the sensible advice offered by Angel Broking that the risk-reward ratio is not in favour of an investment.
Maybe discretion is the better part of valour at this stage.
What is your opinion? Do share!
All her purchases are typically marked by low floating stock, absence of institutional holding and thus any follow up buying would result in 5 X gains from here too
India largely a veg country,but peoples food habit changing fast,fish ,chicken ,mutton(goat) consumption are rising.So is the cost.
So stocks will rise with time. Also india largest exporter of buffalo meat in world.( AlKabeer Co)
Great scope for nonveg food processing industry stocks..
One can buy stocks and reap rich reward with time..if ethically ok with yourself.
Yes…dollyji buys large quantity of stocks of under the radar company…with cheap price..as soon as people know about its UC all the way…she starts booking profit in a short time, Bakras rush to buy when she is selling…5x profit reached.
Use the large profit to buy another low level stocks …cycle continues again &. again . This is how wealth is created in dalal world.
Small Retail customers get crumbs..
Works all the time….
Cannot tolerate Anything For Dolly JEE, All her stocks are multibaggers and and at 10X too she has not booked any profit,
Read Angel report in detail.
This website should have been named http://www.DollyKhanna.com.
Hilarious:
Bhs
Track SKM EGG PRODUCT it will rally to 100 in short/mid-term…. must & mast buy!
But this indicates she has sold out everything
http://www.moneycontrol.com/bse/shareholding/stocks_hold.php?type=1&res=search&id=4844
please advise
She is holding IFB Agro, Selan Paper products, IFB agro is latest entry.
I have question regarding ifb agro capex plan….
The company has announced capex of Rs. 350cr over the next 3-5 years (relatively huge compared to its current market cap of Rs. 296cr) which will result in no dividends being paid over the next two years.
is it for distillery business or prawns ?
I think ifb will be double in one month as like her previous stocks.
Hello Freinds,
as per the Moneycontrols invester’s portfolio,there is only one stock She is holding! http://www.moneycontrol.com/bse/shareholding/stocks_hold.php?type=1&res=search&id=4844
I want to ask you freinds how do you know her portfolio contains “IFB Agro, Selan Paper products”?
Do you have any refference? or please give me guidance.
Thank You
Wish You ,All Happy Deepawali!
Don’t take these guys serious, what is mentioned in MoneyControl is correct and also what is mentioned in Angel article is true. There will be no dividend for the next 2 years due to heavy CAPEX.
Dolly Khanna Sucks!
If you have any doubt about dolly khanna’s holding then you can visit holding co.’s website and check the share holders details.
Can’t understand what’s all fuss about Dolly Khanna. Why everyone wants to copy her stocks ? It’s not like you can’t analyze yourself to make similar or more profits than her.
No matter what happens your own research is better. Nothing is more satisfying than your own research pulling up lot of profits.
I searched a little on internet about her but can’t find any solid information,
– Some say Dolly Khanna is he not she.
– Some say she is wife of Rajiv Khanna who is stock promoter and he invests with her name. If his husband is really a stock promoter then she is no genius in investing.
On other hand it doesn’t even matter.
All fuzz but no info about who she is and what she really does, still everyone want to copy her stocks.
Investors please understand in long run your own research is worth million dollars.
Yes you are Right To the extent that she is the wife of Rajiv Khanna, but he also invests in his own name too.. He is a genius much beyond any investor in India and cloning is no bad idea for long term investors..
Rajiv Khanna, is the Managing Director of Kwality Milk Foods Ltd and has been into dairy products since 1980. His entrepreneurial journey started with setting up “Kwality Ice Cream” in Chennai and “Sub Zero Ice Creams” in Karnataka. The business was sold to Hindustan Unilever Ltd.
Rajiv Khanna is also deeply involved in investments in Indian stock market and other investment instruments.
Rajiv is a B.Tech in Chemical engineering from IIT Madras. His professional experience was with I.C.I. Ltd. He carried out research in the field of Industrial Explosives and Blasting Physics. He was also part of start up team of a pharmaceutical bulk drug plant.
Yes you are Right To the extent that she is the wife of Rajiv Khanna, but he also invests in his own name too.. He is a genius much beyond any investor in India and cloning is no bad idea for long term investors..
Rajiv Khanna, is the Managing Director of Kwality Milk Foods Ltd and has been into dairy products since 1980. His entrepreneurial journey started with setting up “Kwality Ice Cream” in Chennai and “Sub Zero Ice Creams” in Karnataka. The business was sold to Hindustan Unilever Ltd.
Rajiv Khanna is also deeply involved in investments in Indian stock market and other investment instruments.
Rajiv is a B.Tech in Chemical engineering from IIT Madras. His professional experience was with I.C.I. Ltd. He carried out research in the field of Industrial Explosives and Blasting Physics. He was also part of start up team of a pharmaceutical bulk drug plant.
Kwality Milk Foods Limited is the fast growing Dairy Business Company based in Kanchipuram, committed to supply safe and wholesome milk and milk products to its valued customers. The company was initially started in the year 1995 by its Managing Director Mr. Rajiv Khanna. The Company entered into Production of Milk and Milk Products in the year 1995 at Kanchipuram. The Installed Dairy Plant has a handling capacity is 2.25 Lakh liters of liquid milk per day. The powder plant in the factory has the handling capacity of 10 Tons per day and the newly installed Sweetened condensed milk plant has the handling capacity of 6 Tons per day. KMFL procures raw milk from the farmers through networking. The company owns a milk chilling center of capacity 20,000LPD located in Thiruvannamalai District. The Company markets its milk under the Brand name “Ananya” and “Sona”. KMFL also produces the dairy products like Curd, Butter Milk, Skimmed Milk Powder, Dairy Whitener and Sweetened Condensed Milk. The plant facilities are also utilized by other parties who provide the raw milk or skimmed milk for conversion into butter and skimmed milk powder. The Company has excellent manufacturing facilities. The Company has professionally qualified Dairy Technologists, Engineers and Veterinary Doctors to ensure excellent quality. The Company has a well equipped Laboratory.
Now you would appreciate how deep research he does, and why she bought Heritage Foods, because the family knows the industry at the back of his palm..
A stock promoter is like scuttlebutt and he usually have other scuttlebutt as contacts. All of them usually have lot of insider information which a general investor doesn’t have in his hands.
A genius investor is one who makes massive profits with same information which everyone else have in their hands, not the one who knows a lot about what’s going inside.
Therefore I can’t deny when everyone points finger at her, that she buys when business valuations are good but market valuations are down then they lick news everywhere that business valuations are improving.
And then people like you start cloning her stocks leading to instant growth. If his husband is really a stock promoter, then how hard it can be for him to spread that news because if you are stock promoter its part of your job description.
Cloning works if you already know what you are buying and why.
I know Kwality is growth stock but that doesn’t mean you should copy their company profile page as it is.
IFB Agro no doubt is very good stock to hold not because Dolly Khanna bought it. Because they don’t have debts, their net worth, yearly sales, net profits and eps are improving.
I don’t have any grudge against her everyone have right to make money but their method to intentionally create fuzz about stock so that people like you should start cloning her letting them rip instant profit is not what I call genius.
I would advise you to meet any stock promoter and ask him more about how fuzz is created.
Have a nice day.
He is not a stock Promoter, He is not owning a listed company, It is not Kwality Dairy which he owns but Kwality Milk Foods…Also being the owner of a listed company Or Stock promoter Does not give u any license to any inside information except Industry insight that too of the area in which his company operates… He Is a maverick Investor, an intellectual, B Tech IIT from Madras, A member of the Chennai Angels Club. The Chennai Angels (TCA), formerly known as Chennai Entrepreneurship Trust Fund, was established in November 2007 with the objective of fostering Entrepreneurship with prime focus on nurturing and mentoring new generation entrepreneurs.
In an effort to help these young minds, a group of prominent successful entrepreneurs came forward to form a consortium called The Chennai Entrepreneurship Trust Fund in Nov 2007, which is now The Chennai Angels (TCA). TCA are a Group of successful leaders who have successfully built, run and in many cases exited enterprises across multiple domains and industries and help entrepreneurs build and grow their ventures and enterprises into successful companies.
Besides providing capital, TCA members act as mentors for the green horns venturing into the world of business. TCA has among its members several Venture Capitalists who are available to partner TCA on larger outlays. The big advantage of being a TCA investee is that, apart from very high quality mentoring, investors are able to handhold the entrepreneur through the life cycle of fund raising as well and open doors to customers and partners of very high order.
There is no doubt Much info is available On Dolly Khanna whom we all adore, and have the highest respect. One thing that you can straightaway see is that Dolly Khanna does not believe in investing in large-cap stocks. Instead, all her investments are in small-cap and mid-cap stocks. This endorses Mark Mobius theory that your chances of finding multibagger stocks are best when you invest in small-cap & mid-cap stocks.
he second aspect is that most of the stocks are consumption-oriented, meaning that they deal in products like pressure cookers, bathroom fittings, shoes, plastic products etc that will be bought by the great Indian middle-class. This also endorses Mark Mobius theory that your best chance to find multibaggers is to target the “middle-class-products” companies.
The third aspect is the concentrated nature of the portfolio. With just 11-15 stocks in her core portfolio (she may have other minor holdings), you can be sure that Dolly Khanna keeps an eagle eye on her stocks and knows exactly what is happening.
My mistake on names of company. Company owner doesn’t have information but stock promoter does. I already mentioned I don’t have any solid info on her or her husband.
I don’t have any personal grudge against her. I just can’t suspect what I read about her on internet while searching about her nor can I suspect people’s contradictory opinions on this blog.
I am getting feeling that you again copied most of the text from somewhere else.
By the way, I don’t think everyone is hungry for extra info. Most information that is needed to make investment decision can be easily found on Balance Sheets, Annual and Quarterly reports, Corporate News Feed, EPS and price chart.
All of them are freely available to everyone.
You can find multi baggers in small cap and mid cap companies isn’t any secret. Almost every book on long term investing, every investment training program, every analyst on television puppets the same thing.
Consumer Goods, Fast Moving Food Products, Turn Around And Financial Cycle stocks have huge potential of becoming multibagger isn’t any secret either.
It can be found on almost all investing books which also includes books written by Graham Benjamin, Philip Fisher, Peter Lynch, Bill Miller, J M Hurst, Will O’ Neil and also the Martin Pring.
What someone buys totally depends on what they think about different stocks. I usually buy debt free growth stocks for short term, my method is derivative of methods mentioned by Will O’ Neil, J M Hurst and Martin Pring.
Also it is false concept that you can not multiply money in large cap. I have met guys who invest in large cap futures.
You only need 25% capital as margin to hold single lot. They invest by planning only 25% move for month and gain nearly 100% return every month.
How they do it is their secret. If you know how to do it, you can make money by investing in stocks, you can make money by investing in futures and you can also make money by trading options.
Just don’t copy stocks without solid info. Have a nice day.
Well The whole purpose of the blog is to follow what respected investors are doing, and I do not think that there is any denying Dolly Jee is the authority on small and Mid caps. She has everything right with her, sectors, stocks, like her personality who is extremely media shy, her stocks too are the ones which have no media, institutional, stock, research or prominent investor coverage and holding.
She takes concentrated bet and has made big in Hawkins cookers, TTK Prestige, Relaxo Footwears, Avanti Feeds, Selan Exploration, Wim Plast, Paper Products, Bayer ABS, Heritage Foods, Manjushree Technpok, Cera Sanitraware, NilKamal Plastics, Amar raja Batteries, RS Software, Aditya Birla Chemicals, Vimta Labs, Pondy Oxides, ABC bearings, Gandhimathi Appliances, etc…
She makes a concentrated portfolio because of her conviction buys none or more than 1% and , is extremely patient But gives a whip to non performers if her patience runs out.. In RS Software she was holding the highest percentage amongst all her holdings in percentage terms…She giver her money where here conviction is.. IFB agro is her latest Pick…
amit
i doubt she sholds currently in pondy and abc
pl refresh
sincerely and big cheers
jacob
Also please can U clarify what do u mean by Stock promoter…..
I would like to read about Mark Mobius theory. Where I can find about it. I did Google but nothing came as Mark Mobius theory.
A stock promoter is a guy whose job is to promote stock of company in both primary and secondary market.
In short his job is persuading people to buy stocks of particular company so that prices can go up.
Pump and Dump is price manipulation technique in which buzz about particular stocks are created so that prices can go up so that you can sell your own stocks at profitable price.
That’s what most of the time stock promoters do.
Read more about it here : http://en.wikipedia.org/wiki/Pump_and_dump
They can also create false hype to bring prices down. They are promoters and hence they are given every required piece of information that can help them pump or flatten prices.
They are mostly hired by either companies themselves or big pocket investors whose money gets stuck to make prices of their stocks go up.
There are legal and illegal means to promote stocks, a stock promoter doesn’t always a bad guy neither a company that hires promoters.
Most Stock Promoters don’t promote bad stocks but most of them are masters of price manipulation in market.
I hope that helps.
I thought by stock promoter u meant a promoter, CEO, owner or Chairman of some company, I am extremely sorry you have than no info on her, Holding 1% in amar raja batteries is no joke, she is very very rich and belongs to a elite intellectual class family, Her husband is an IITan, and they sold Kwality brand to HLL…. She must be in top 10 most prominent and rich investors in India.
Hi Amit,
I don’t know why you are crying iitian iitian every time you reply. But let me clear your little misconception, educated doesn’t always mean intelligent.
You look nothing more than a poor victim of deceptive marketing about both investing and education.
I don’t know anything about her nor I was able to find any solid information on her.
I care least about who she is, who is her husband, how much money they have and what are their educational qualifications.
The whole point of discussion was don’t invest blindly, do your research yourself. It’ll hardly take an hour or two.
I am not her enemy but the prices of even cold stocks start marching upwards as soon as she buys it, is surely very suspicious activity.
On that basis you can surely give benefit of doubt to those who think she somehow manipulates stock prices.
Finally it is your money, invest in any stock you want. Neither I nor anyone else have any right to say anything about it.
Have a nice day.
You Are 100% right to the extent that we must not do our own research. Neither u are her enemy neither u are mine, neither She or husband Is my friend. The only reason I am writing here is because I feel pained is because She has been accused of stock promoter, ie being paid for promoting stocks, that was worse of what I thought was being accused of having insider information.. She shares the Dias with Rakesh Jhubjhubwala, Enam, Vijay Kedia, Damanis, Ramesh, Nimesh Shah, Mankekars in terms of identifying stocks early… , Amongst these 3 investors Mankekars, Nemish Shah, Radkrishan Damani and Dolly Khanna are extremely media shy and U would never even find a interview or media pictures even on net… They want to keep cards close to their chest and the reason a lot of fuzz is created is because of her 100% track record of having multibaggers identified at early stage like TTK prestige, Hawkins cookers etc. These companies do not need stock promotion.. Another Guy whom I adore like Dolly Khanna is Value Pick (VP) who is also very media shy but has huge fan following and a lot of fuzz is created.. U cannot avoid fuzz when there is fan following,,IFB agro may be costly but Fuzz would be there in all her stocks till people realize she too is making mistakes, which fortunately she has her magic wand intact..
Dolly Khanna checks into asian granito in the latest shareholding pattern with a high profile entry. check latest bse india shareholding pasttern….for Dec 2014
Sir Stock is up 20% on Wednesday, 22nd October after news is flashed here.
stock is up 11% today in Diwali Mahurat trading.
This stock went up by 34% in a single day. Hurray!!!
23rd Oct – DIWALI TRADING Session:
507438 IFBAGRO Group (B)
IFB Agro Industries Ltd. LIVE on BSE (View NSE)
386.95 +98.75 +34.26%
Volume 42,607
Prev close 288.20
Day’s H/L (Rs.) 415.00 – 378.70
52wk H/L (Rs.) 415.00 – 129.05
Mkt Cap (Rs. Cr) 363.73
The Volume of Stock traded 42,607, says a lot about this stock. I sincerely suggest myself to no put my hands on this stock now.
Bhs
How big factor is Working Capital rapid increase or decrease in stock price movement?
I see working capital has increased sharply for IFB Agro.
Mar 12 – 32.12,
Mar 13 – 80.83,
Mar 14 – 84.01.
I am seeing it a big negative due to sharp increase. It may depend on the reason for the increase also.
Hi Satya,
You can find Mark Mobius theory in his book Passport To Profits. In short his theory tells,
– Multi Baggers can be found in mid cap or small cap companies
– They get influenced by politics, global economy and macroecomonic factors
– They remain least affected by local economic factors
– Consumer goods, light industrial goods, consumption based goods turn into multi baggers.
– Most multi bagger stocks companies produce products used by middle class society
Hard to explain in short but I think you can get an idea. Read his book for more information.
Yes, Got your point. Recently Rakesh J. also suggesting to invest in consumption based stocks. I see good point in it now as middle class will rise when economy will improve. Thank you for your reply.
Only when the tide goes out do you discover who’s been swimming naked
Yes you are right, She is not holding it anymore 1% or more, may be she has booked profit, or have her holdings less than 1%..
A very through investigation.One has to be a code breaker to invest in stocks . Jim Simons who set up the renaissance hedge fund was in fact a code breaker in the American forces.This fund has been one of the most successful hedge funds.If I recollect correctly it doubled its money every years for over fifteen years.The book “more money than god” has an interesting chapter on him
I tip my hat on your thorough research; rk
@Amit:
Dear Amit,
I appreciate all your thoughtful comments on this blog.
Can you please let me know where did you get info about she reduced her holder to <1%?
Because the quarterly individual holding is not yet out in Q4. Neither does bulk/block trade get notified to public. Then how do you know she sold off a portion of her holding?
Regards,
Ankur S
Dear Ankur,
Which company are you referring to? I am talking of Pondy Oxides and Abc bearings being reduced to less than 1% in reply to Jacobs observation. I hope Ankur this clears confusion. I also think she has also reduced in Amar raja batteries and NDTV…
Dolly Khanna’s Magic continues like Rohit Sharma’s tenure. After hitting a double ton In Manjushree where Private Equity players want the company to go private by funding the promoter companies, IFB Agro her latest pick was firing all cylinders, after her previous pick in the same shrimp segment touched the 2000 mark.. IFB is likely to report an EPS of Rs 39.5 for FY 2015 as per Angel Broking previous reports, and keeping in mind the same P/E ratio of Avanti Feeds it is scheduled to touch Rs 562. A superbhiddengems.blogspot too has given a short term target of Rs 650-700, .. Crtics would point out the company does not pay dividend but so does IFB Industries which just was short of kissing Rs 500 mark.. Critics would also point out Angel Broking withdrawn coverage citing high valuations, but so did HDFC Sec’s target price of Rs. 154 has come and gone a long time ago, the company has found marquee investors at Rs 455 floor price.
Hi Amit,
How much you are confident when you saw that this qtr result was not that good? I just added some to it but I could have added more.
I was very confident, results were very good as compared to June 2014 results, also it would clock an Eps of Rs 39.5, and should have at least a p/e ratio of 14-15. Also this is the not the first time she is investing into this business.. Avanti must have given him lot of knowledge and experience..
Hmm! PE is already 21.83 according to new price.
Yes, I agree that she may have got lot of knowledge from Avanti. Sales YoY has increased but EPS has not, so it was not taken as very good result. I added as I saw it started gaining. Avanti is still 17. Do you think I sud have that in this price! What could one expect from this price?
Satya, You must go through Angel Broking reports and also the results of the company and Its seasonal nature of business. It is likely to report an EPS of Rs 39.5 as per Angel and most of the income and profits come in second part…
http://economictimes.indiatimes.com/markets/stocks/news/mr-mrs-khanna-the-latest-blockbuster-on-d-street-tracked-by-market-watchers/articleshow/45141382.cms
Some Latest info on dolly khanna, I think the charm will now wade, as she had finally bitten the publicity limelight, though still no meeting and picture…
Ifb Agro kisses Rs 500
Ifb agro is moving south. Any recommendations pls
Dolly Khanna latest entry Asian granito, in Dec 2014, perhaps she knows the industry at her best after 20 bagger in cera Sanitryware
Hi Amit,
Thanks for the info. Is there any link to confirm the news. I tried to find in BSE but could saw her name there.
Yes sir, in asian granito u can see shareholding pattern
In shareholding pattern, there is no name of Dolly Khanna. Kindly let me know how did you figure out that this person purchased the stocks on the day 1 of the news.
Please look into corporate annoucements at Bse india of asian granito for shareholding pattern of Dec 2014