Dolly Khanna’s portfolio of 18 small-cap stocks is worth Rs 400 Cr. One stock has an allocation of 42%. 7 stocks have an allocation of more than 5%. 6 stocks have given multibagger gains in excess of 100% YoY
On the face of it, Dolly Khanna looks like an investor who prefers a diversified portfolio with 18 stocks of different sectors. However, the situation is that she is actually a concentrated investor with just one stock (Chennai Petro) commanding a lion’s share of the funds.
Also, seven stocks (as of date) have an allocation of more than 5% of the AUM. There are also some low conviction stocks in the portfolio such as Simran Farms and National Oxygen with an allocation of less than Rs 1 crore each.
Her present portfolio is as follows:
STOCK | CMP (Rs) | NOS of Shares | VALUE | % to portfolio |
|---|---|---|---|---|
| Chennai Petro | 596.75 | 2,412,020 | ₹1,439,372,935.00 | 35.29 |
| KCP | 42.92 | 1,432,638 | ₹61,488,822.96 | 1.51 |
| Monte Carlo Fashions | 768.5 | 401,512 | ₹308,561,972.00 | 7.57 |
| Nitin Spinners | 372.65 | 656,338 | ₹244,584,355.70 | 6.00 |
| Mangalore Chem | 145.1 | 1,437,990 | ₹208,652,349.00 | 5.12 |
| Prakash Pipes | 502 | 774,451 | ₹388,774,402.00 | 9.53 |
| Pondy Oxides | 860.7 | 356,523 | ₹306,859,346.10 | 7.52 |
| Talbros Auto | 290.7 | 193,215 | ₹56,167,600.50 | 1.38 |
| Control Print | 714.5 | 193,582 | ₹138,314,339.00 | 3.39 |
| Tinna Rubber | 1302.9 | 221,932 | ₹289,155,202.80 | 7.09 |
| Deepak Spinners | 181.65 | 118,743 | ₹21,569,665.95 | 0.53 |
| Simran Farms | 201.95 | 54,496 | ₹11,005,467.20 | 0.27 |
| Prakash Industries | 169.45 | 1,798,140 | ₹304,694,823.00 | 7.47 |
| Som Distilleries | 103.64 | 873,429 | ₹90,522,181.56 | 2.22 |
| Salzer Electronics | 1015.8 | 177,599 | ₹180,405,064.20 | 4.42 |
| Rajshree Sugars | 60.62 | 347,035 | ₹21,037,261.70 | 0.52 |
| National Oxygen | 126.25 | 56,973 | ₹7,192,841.25 | 0.18 |
| Total | ₹4,078,358,629.92 | 100.00 |
Chennai Petro is the crown jewel of the portfolio with a valuation of Rs 167 crore as of date.
Six stocks in the portfolio have given multibagger gains in 2023
According to a report in the ET, six stocks in the portfolio of 18 have given gains in excess of 100% in 2023. These are Chennai Petroleum, Talbros Automotive, Prakash Pipes, Tinna Rubber and Control Print.
It is pointed out that Chennai Petroleum owns one of the largest standalone refineries in south India with a capacity of 10.5 mtpa. Khanna owned 1.62% stake in the company, the stock of which has rallied around 228% this year.
Anand Rathi has recommended a buy of Chennai Petro for a 12-month Target Price of Rs775, valuing the stock at 4.5x FY25e EV/EBITDA.
Dolly Khanna holds 1.57% of Talbros Automotive. Vijay Kedia owns 1.22% stake in the company. The stock has rallied around 173% in 2023.
Prakash Pipes has a market capitalisation of just around Rs 1,000 crore and has rallied around 171% this year. Dolly Khanna holds 3.24% stake in the company.
Tinna Rubber And Infrastructure and Control Print are also smallcaps which have given returns in excess of 100%.
Investment philosophy explained
Rajiv Khanna, Dolly’s alter ego, has explained his investment philosophy in a talk he gave to IIT Madras titled “My Entrepreneurial and Investment Journey”.
Short-term investor looking for quick-fire gains
One thing that is obvious from the portfolio of Dolly and Rajiv Khanna is the constant churning of the stocks. Rajiv admitted in a talk that he gave recently that he is a short term investor, not a long term one. His current strategy is to stay invested in stocks with price above their 30 day DMA. He also affirmed that he was never a long term buy and hold investor.
He also takes investment decisions in a short span of time based on a gut feeling. He does not believe in obsessive researching of fundamentals.
The legendary Rajiv Khanna (Dolly Khanna's husband) spoke at TIA today. What did he say? All quite shocking!
1) He's a short term investor, not a long term one. His current strategy is to stay invested in stocks with price above their 30 day DMA.
In fact, Khanna was never a…
— Neil Borate (@ActusDei) September 9, 2023
My strategy now-a-days is all about the next 5%. It helps me invest better and keep calm, says Mr. Rajiv Khanna. #LetsTalkMidCap
— Kotak Securities Ltd (@kotaksecurities) December 11, 2017
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