We must compliment Tanvir Gill and Yatin, the young and enterprising reporters at ET, for the tenacity that they have shown in tracking down Dolly Khanna’s portfolio and calculating her returns.
|Dolly Khanna’s Latest Stock Portfolio|
|Stock||% of holding||Nos of shares (lakhs)|
The first point worth noting is that the details of the portfolio culled out by Tanvir and Yatin are not complete. Dolly has holdings in several other stocks like NOCIL, Lloyd Electric, Meghmani Organics etc which have escaped the attention of the two intrepid reporters. There are also stocks that Dolly has scooped up in the July to September 2015 quarter which are not yet in the public domain.
In fact, Rajiv Khanna candidly admitted in an earlier CNBC TV18 report that Dolly has as many as 40+ stocks in her portfolio. Many stocks may never come to our knowledge.
The second point worth noting is the extent of diversification that Dolly has brought into her portfolio, both in respect of the number of stocks and the sectors that they represent. Dolly has a stock representing each of the FMCG, Defense, Pharma, Software, Textiles, Granites, Paper, etc sectors.
However, the one sector that is conspicuous by its absence is the Banking and NBFC sector. Dolly has an old allergy to stocks in these sectors and doesn’t touch them with a barge pole. It may be recalled that Prof Sanjay Bakshi, the authority on value investing, has not only an allergy to Bank and NBFC companies but also to companies that avail of debt. The Prof insists that his companies have a debt-free status. However, Dolly is not allergic to companies having excessive debt as is evident from her holding in Nandan Denim.
Dolly was also earlier allergic to Pharma stocks. She broke her taboo last year when she bought Venus Remedies. Unfortunately, the consequences have not been pleasant. Dolly made the mistake of picking a junkyard stock. She ought to have picked a powerhouse stock the way Basant Maheshwari did. It may be recalled that Basant also had an irrational fear of Pharma stocks. He broke the taboo by picking three powerhouse stocks, Granules India, Cadila Healthcare and Torrent Pharma and has earned such huge returns from them that he now cannot stop singing the virtues of the Pharma sector.
Tanvir and Yatin have also computed Dolly Khanna’s yearly gains. As expected, the returns are impressive. She raked in 208% from Dai-Ichi Karkaria, 110% from Nilkamal, 78% from Nandan Denim, 51% from Hutamaki and so on. Dolly’s average CAGR works out to about 50%+, the duo reported.
The best part is that most of Dolly’s stock picks are powerhouse stocks and are still, despite their blazing performance, small and mid-caps. There is a lot of steam left in these stocks and they will continue to enrich Dolly for many years to come.