These 3 stocks made money for ace investor Dolly Khanna so far in 2018; do you own any?
Just like not all fingers are same, not all days, months, minutes and seconds of Indian markets are the same. It is no mystery that equities are most volatile and risk-related investments across the globe.
Just like not all fingers are same, not all days, months, minutes and seconds of Indian markets are the same. It is no mystery that equities are most volatile and risk-related investments across the globe. Very few investors make it large on stock exchanges. The first few words to appear in any stock market-related conversation are long-term, risk, sentimental, not-guaranteed return, money making magnet, patience, right stocks, right gains, bearish, bullish, heavy losses and hefty returns. Surely, this is the game and secret of Indian equities. But, there are few investors who have mastered the arithmetic of equities. One needs to pay attention to these investors who have actually made it large.
After ace investor Rakesh Jhunjhunwala, it would be Dolly Khanna who is quite famous among investors on BSE and NSE. Earning and losing money is part of these investors' lives. Interestingly, we are just 11 days away from the new year and most investors would be looking at their demat account to know how much gains and losses they made in 2018.
This year has been very volatile for Indian markets. Both Sensex and Nifty had their momentary bearish and bullish days. In first half of 2018, Sensex and Nifty earmarked all-time highs of 38,989.65 and 11,500 level, respecitvely. However, tables turned dramatically in the second half of the year as Sensex went down to 34,000-mark before recovering to 36,000-level. Nifty was also hit as it hovered below 11,000-mark.
Majority of the stocks are expected to take a hit when Sensex and Nifty take a nosedice. But, this wasn't the case with stocks owned by Dolly Khanna. The ace investor holds 21 stocks with her major holdings in 14 stocks. The remaining stocks have been exited to below 1%.
Even Khanna faced the burn of volatile Indian markets as 18 of her stocks gave her negative returns so far. Simply put, Khanna stands to gain just in 3 stocks in 2018. If you have invested in any of these three stocks than you stand to be rich as well.
The best performer for Dolly in 2018 has been Muthoot Capital Services. The company gave about 57.10% gains to the investor. Notably, Muthoot was also the company in which Dolly increased her holding by 0.12%. Now she has about 1.19% stake in Muthoot with 195,692 equity shares worth Rs 19.1 crore.
Apart from this, Dolly also witnessed a single-digit growth in 2018 from Associated Alcohols & Breweries where the investment is below 1%. This company has given 8.9% return to the investor.
Going ahead, it was Dolly’s third favorite stock Radico Khaitan which did not disappoint the investor. Radico has given about 51.2% gains to the investor. Interestingly, Radico was also among the company where Dolly increased her holding between July - September 2018 quarter by 0.14%. Currently, the investor has about 1.20% stake in Radico with 1,602,204 equity shares worth Rs 67.6 crore.
Did you know Radico Khaitan is seen as a money making magnet ahead!
Anubhav Gupta, analysts at Emkay said, “RDCK is delivering on all fronts: sales volume growth, margin expansion, earnings growth and debt reduction. We believe that RDCK is on track to generate 49% earnings growth in FY19 and 28% in FY20. This earnings growth should lead to solid cash flow generation and ROCE improvement. The company expects to become debt free by FY20. ROCE should expand to 21.6% in FY20 from 14% in FY18. “
Thereby, Gupta gives Buy rating with a target price of Rs 547 for 12 months.
Similarly, HDFC Securities have reiterated BUY with revised TP of Rs 548 (32x Sep-20E EPS) vs. 40x for UNSP. RDCK trades at relatively cheap valuation at 26/23x FY19/20E EPS vs. 52/43x for UNSP.
Equity king Warren Buffett once said the market is a machine for transferring money from impatient to patient. This line is best described for Dolly Khanna who has been trading since 1996. The amount of money she stands on is because of being patience, not panicking when stocks tumble, investing beyond nature of markets and holding on for as long as one can in markets.
Khanna’s portfolio is more than Rs 500 crores. Her stocks are managed by husband Rajiv Khanna, and her portfolio involves mostly typically traditional stocks from sectors like manufacturing, chemicals, textile and sugar.
On Trendlyne.com, Dolly Khanna is described as a Chennai based large investor, who is known for lesser-known picks that tend to go on to overperform in the stock market.