Dolly Khanna a.k.a Rajiv Khanna never ceases to amazes us. How she manages to ferret out winning stocks with such consummate ease will remain one of the enduring mysteries of life.
Dai-Ichi Karkaria:
Dai-Ichi Karkaria is a micro-cap with a market capitalisation of Rs. 152 crore. It is engaged in the manufacture of specialty chemicals, surfactants and specialty polymers which are used in various industries like paints & pigments, adhesives etc.
Dolly has bought 78,221 shares of Dai-Ichi in the March 2015 quarter. Her investment is worth Rs. 1.60 crore at the CMP of Rs. 204.
Dai-Ichi’s salient points have been nicely summarized by GEPL in their research report of September 2014. They have given five reasons why Dai-Ichi is a good buy:
(i) Strong demand expected for specialty chemicals;
(ii) High margins of 10% and high ROE of 18%;
(iii) Debt-free balance sheet and very efficient working capital cycle;
(iv) JV with Nalco Champion, the World leader in oil field chemicals;
(v) Reasonable valuations. When GEPL issued the report, Dai-Ichi was quoting at 6.7x FY14 EPS. Today, it is quoting at 10.48x TTM EPS of Rs. 19.51. While the stock is not as cheap as it used to be, it is not frighteningly expensive either, especially given the prevailing bull market.
Venus Remedies:
Dolly’s other stock pick shatters the myth that she is wary of investing in banks and Pharma companies owing to their vulnerability to regulatory issues.
Venus Remedies is also a micro-cap with a market capitalisation of Rs. 192 crore. It is engaged in manufacture of various products across therapeutic segments including oncology, anti-infective, neurology, cardiology, orthopedic, pediatrics etc.
Dolly has bought 117,865 shares of Venus Remedies in the March 2015 quarter. The investment is worth Rs. 1,98 crore at the CMP of Rs. 168.
Venus Remedies is a bit of an aberration because on a YOY basis, it has given a negative return of nearly 50%. Even the six month return is a loss of 37%.
The reason this happened was because there was great hype created over the launch of a product called ‘Trois’ (a pain killer) in the Singapore market. However, the Company was heavily indebted and delayed repayment of loans. This led to CRISIL downgrading the rating. One thing led to another and the stock price plunged, resulting in heavy losses to its shareholders.
Dolly Khanna’s calculation appears to be that the worst is priced in and that Venus is finally beginning to get its act together. The fact that Venus Remedies is quoting at a P/E of 5.23 is an indication that it has bottomed out.
Dolly’s logic appears to make sense. While all other Pharma companies are presently quoting at stratospheric valuations, Venus Remedies is available at a rock bottom valuation. This means that there are no expectations and the downside is limited. On the other hand, if there is a whiff of good news (such as the launch of a new drug etc), Venus can be expected to go surging up.
So, Dolly Khanna has really acted as a value investor in buying Venus Remedies!
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Thanks for the info
venus performance trackrecord on bourse is not commendable
i know this scrip from IPO and had applied..
Arjun, The big boss himself came to give comments is a compliment for me !!
if DK or RJ buy
lndian Hotel, Lloyyds electeic, Acc,( acc is the most bearish stock if one luk at its history) ( deepak fertilizers, tata chemicals, voltas, till some time back )the whole Jindal groups. Tisco etc for the simple reason that they are erratic
the first three are very obedient to stay where they are and they are not obedient boys and never abide technical rules..
for me these are widows shares
Venus remedies 19% today. What the ~^c& dont understand the fuss in the air.
Dolly khanna exited Cera and Nucleus Software in March Quarter. Looks like her portfolio size has reduced a lot.
anyhow now that a MANIA is created neverbefore like this
and whatever these guys buy the entire crowd follow suit and hyper created!!!
These guys are shinning like anything and public make them richer
this happens at t he height of bull market
none luk at funda an d i remember FIIS were waiting in queue to get a DARSHAN of harshad Methas kitchen staff .. really.. to get any inside information emanating from the whispers or from the talks at dinning table!!
sad state of market
is this true…that is hilarious but world has changed a lot since then ?
DK has entered nandan denim in recent march quarter. You can check shareholding pattern to confirm
dolly khanna sold complete holdins in AKSHARCHEM .COMPANY FILED FRESH SHAREHOLDING TODAY. IAM SELLING COMPLETELY
http://www.bseindia.com/corporates/shpSecurities.aspx?scripcd=524598&qtrid=94.02&Flag=New
my simple query
are they buying below the 1% to avoid radar
or else is it in particular nandan came in bulk deal report on that day
–
if known by arjun and team I cannot ask why
but will say there was ” dealy in updating this vitial information”
tip in market parlance = left over
is these left over when everyone take postions and get stomatch full a stage came when one get nervous of the postion.. then they start sharing..
this is the only thing i have found in market including me
sincerely
jacob mathew
Are you expecting everybody to wait until you can take a position? I don’t see how it is anybody’s fault that they are sharing info with you. And to be precise, I invested in Nandan denim in Feb, when I was not even aware of DK’s interest. Would you now claim that DK copied me and now I should make it public every time I invest?