Dolly Khanna, a prominent figure in the investment community, is well-regarded for her strategic approach to identifying lucrative opportunities across a variety of sectors. Her investment philosophy emphasizes long-term value creation, supported by meticulous research and analysis. Recently, she has amplified her holdings in two particular stocks, sparking interest among investors eager to understand her rationale.

Current Stock Holdings and Net Worth

As of the latest reports from Trendlyne.com, Khanna’s portfolio consists of 17 stocks with an impressive net worth of ₹365 crore. Her recent decisions to increase stakes in two specific companies indicate her confidence in their potential for growth. Notably, both stocks are trading at significant discounts—over 40%—due to market fluctuations, making them enticing options for investors looking for value.

Exploring Prakash Industries Ltd

Founded on July 31, 1980, Prakash Industries Ltd, originally named Prakash Pipes and Industries Ltd, specializes in manufacturing steel products and generating power. The company has a market capitalization of ₹2,861 crore and has been part of Khanna’s portfolio since September 2023. As of December 2024, she increased her stake from 1.28% to 2.07%.

• Debt Reduction: Over the past five years, Prakash Industries has successfully reduced its debt from ₹661 crore to ₹378 crore.
• Sales Growth: The company’s revenue has shown a modest compound annual growth rate of 1%, increasing from ₹3,588 crore in FY19 to ₹3,678 crore in FY24.

Despite a 38% decline in EBITDA from ₹788 crore in FY19 to ₹493 crore in FY24, net profits have rebounded significantly, rising from ₹190 crore in FY23 to ₹348 crore in FY24—an increase of 83%. The share price has surged by 566% over the last five years, currently trading at ₹160, which is 48% below its all-time high of ₹310.

• Valuation Metrics: The stock trades at a price-to-earnings (P/E) ratio of 8x, substantially lower than the industry median of 22x.

Insights into Prakash Pipes Ltd

Prakash Pipes Ltd emerged from a demerger from Prakash Industries in June 2017 and has since established itself in the PVC pipes and fittings sector. With a market cap of ₹914 crore, the company has diversified into flexible packaging, leveraging a state-of-the-art facility in Uttarakhand.

• Strong ROCE: With a Return on Capital Employed (ROCE) of 32.7%, Prakash Pipes demonstrates efficient capital utilization, producing ₹32.70 for every ₹100 invested.
• Stake Increase: Khanna’s stake in Prakash Pipes grew from 3.71% in December 2024 to 4.08% in March 2025.

The sales growth rate for Prakash Pipes has been robust, with a 14% compounded annual growth rate over the past five years. From FY19 to FY24, EBITDA increased from ₹39 crore to ₹107 crore, reflecting a 23% CAGR. The current share price of ₹382 marks a 1,265% increase from ₹28 five years ago, yet it remains 43% below its peak of ₹668.

• Future Plans: By FY26, Prakash Pipes aims to expand its packaging capacity and introduce new product lines, indicating a proactive growth strategy.

Investment Prospects and Conclusions

Dolly Khanna’s strategic moves in Prakash Industries and Prakash Pipes showcase her confidence in their future potential. Both companies are navigating challenging market conditions but demonstrate promising financial metrics and growth strategies.

• Discounted Opportunities: With both stocks trading significantly below their all-time highs, they present appealing options for investors looking to add value-oriented stocks to their portfolios.

As developments unfold, investors keen on following Khanna’s footsteps should keep a close watch on these two companies to gauge their potential as future multibaggers.

Disclaimer: The content herein is for informational purposes only and does not constitute investment advice. Always consult with a financial advisor before making investment decisions.