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Dolly Khanna Unveils Her Latest High-Conviction Bets
Dolly Khanna, a celebrated investor often dubbed the 'Queen of Small Caps,' has once again captured market attention with her strategic investments. Known for her disciplined, research-driven approach focused on long-term value, Khanna's portfolio is a benchmark for many investors seeking profitable returns. Her latest moves highlight a keen eye for identifying companies poised for significant growth, with recent picks showing an impressive track record.
Khanna currently manages a portfolio valued at ₹291 crore, comprising 10 stocks. Her recent activity centers around two companies: GHCL Ltd and Southern Petrochemicals Industries Corporation Ltd (SPIC). Both have demonstrated substantial past performance, delivering gains exceeding 200% in the last five years, and currently present compelling valuations, prompting a closer look at their potential as future multibaggers.
GHCL Ltd: A Chemical Sector Powerhouse
GHCL Ltd, formerly Gujarat Heavy Chemicals Limited, established in 1983, stands as a leading manufacturer of Soda Ash (Anhydrous Sodium Carbonate) in India. With a market capitalization of ₹5,329 crore, GHCL holds the second-largest market share in India's soda ash production, accounting for over 26%. Its esteemed client roster includes major names like Hindustan Unilever, Procter & Gamble, and Borosil Renewable.
Dolly Khanna has significantly increased her stake in GHCL, acquiring 1% worth ₹61.5 crore in the March 2025 quarter, and subsequently raising it to 1.2% worth ₹67.3 crore by September 2025. Financials reveal a company with resilience; despite fluctuating sales figures, its net profit has remained positive for a decade, even seeing a substantial surge in FY23. For H1FY26, the company reported sales of ₹1,517 crore and a net profit of ₹251 crore.
GHCL's share price has seen remarkable growth, climbing from ₹180 in December 2020 to ₹580 by December 15, 2025, an increase of over 220%. The company's current PE ratio stands at 9x, significantly lower than the industry median of 22x and its own 10-year median of 7x. It offers an attractive dividend yield of 2%, among the highest in its sector. Furthermore, GHCL has substantially reduced its debt from over ₹1,250 crore five years ago to approximately ₹96 crore currently. Its capital efficiency is notable, with a Return on Capital Employed (ROCE) of 24%, far exceeding the industry median of 9%. The company has also announced a share buyback program aimed at optimizing capital structure and enhancing shareholder value.
SPIC: A Fertiliser and Chemical Contributor
Southern Petrochemicals Industries Corporation Ltd (SPIC), incorporated in 1993, operates in the crucial sector of manufacturing and selling Urea and Nitrogenous chemical fertilizers. With a market cap of ₹1,664 crore, its product portfolio is diverse, encompassing primary and secondary nutrients, water-soluble fertilizers, organic fertilizers, and industrial products.
Dolly Khanna's interest in SPIC has also grown, with her stake increasing from 1.7% (worth ₹32 crore) in the June 2025 quarter to nearly 3% (valued at ₹45.5 crore) by September 2025. Financially, SPIC has shown steady growth. Sales have compounded at 8% annually over the last five years, reaching ₹3,086 crore in FY25, with H1FY26 sales at ₹1,600 crore. EBITDA has compounded at approximately 21%, and net profit has seen a 19% compounded growth rate, reaching ₹156 crore in FY25. H1FY26 net profit stood at ₹128 crore.
The share price of SPIC has seen an impressive surge of over 270%, from around ₹22 in December 2020 to ₹82 by December 15, 2025. The stock trades at a modest PE of 9x, again much lower than the industry median of 22x. SPIC offers a high dividend yield of 2.42%, significantly above the industry median of 0.1%. It declared an equity dividend of ₹2 per share in the past 12 months.
Investor Sentiment and Future Prospects
These investments underscore Dolly Khanna's strategy of identifying undervalued small-cap companies with strong fundamentals and growth potential. While small-cap stocks are often perceived as high-risk, Khanna's consistent success challenges this notion, demonstrating that careful research can unlock significant value. The market eagerly watches her moves, and these picks are expected to draw considerable investor interest.
Impact
This news is highly relevant for Indian stock market investors, particularly those tracking or investing in small and mid-cap segments. Dolly Khanna's investment decisions often influence sentiment and stock performance. Her recent choices in GHCL Ltd and SPIC could spur further interest in these companies and potentially highlight the broader potential within their respective sectors. The companies themselves may benefit from increased investor confidence and potential capital inflow.
Impact Rating: 8/10
Difficult Terms Explained
- PE Ratio (Price-to-Earnings Ratio): A valuation metric that compares a company's current share price to its earnings per share. A lower PE ratio may indicate an undervalued stock.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance, excluding the impact of financing, tax, and non-cash expenses.
- ROCE (Return on Capital Employed): A profitability ratio that measures how efficiently a company is using its capital to generate profits. A higher ROCE indicates better efficiency.
- CAGR (Compound Annual Growth Rate): The average annual growth rate of an investment over a specified period of time, assuming profits are reinvested.
- Share Buyback: When a company repurchases its own outstanding shares from the open market, which can reduce the number of shares outstanding and potentially increase earnings per share.