Prominent investors Sunil Singhania and Dolly Khanna have cut their stakes in Sarda Energy & Minerals and Rain Industries to below 1%. Singhania’s exit from Sarda Energy follows a multi-year profit-taking strategy after a period of strong stock gains. Meanwhile, Khanna’s move in Rain Industries suggests a shift in her portfolio strategy for the carbon products manufacturer.
Sunil Singhania’s Abakkus fund and investor Dolly Khanna have adjusted their manufacturing-sector holdings, according to recent shareholding data. Both investors have reduced their stakes in their respective companies to below the 1% threshold, which means they are no longer required to publicly disclose their specific ownership levels in quarterly filings.
Sarda Energy & Minerals: Profit Taking After Multi-Year Rally
Sunil Singhania’s exit from Sarda Energy & Minerals comes after a steady reduction of his stake that began in September 2023. This long-term approach indicates a strategy of locking in gains following a significant performance period for the stock. Since July 2021, Sarda Energy has seen a notable increase in its share price, rising over 660%.
Beyond the stock performance, the company has undergone a major business transformation. It has moved from being a traditional steel and ferro-alloys producer to expanding its footprint in the power generation sector, largely through the acquisition of SKS Power Generation. Today, the energy business accounts for a large portion of the company’s operating profit. From a financial standpoint, the company has maintained a strong balance sheet with very little debt and has shown consistent profit growth over the last five years. However, with the stock currently trading at a higher valuation compared to its historical average, the exit by a prominent fund manager suggests that the market may have already factored in much of the company's energy-transition success. Investors now often watch how the company balances its steel operations, which face a cooling price cycle, with its newer energy business.
Portfolio Shifts at Rain Industries
Dolly Khanna, who is often followed for her interest in smaller-cap value stocks, has also exited her position in Rain Industries. The company, which produces carbon products and cement, operates in a sector sensitive to global demand and raw material price fluctuations. While the specific reasons for her exit are not stated, investors typically monitor such moves as they can indicate a change in outlook toward the company’s growth prospects or its ability to navigate current sector pressures. Rain Industries has historically dealt with the challenges of global commodity price volatility, which directly impacts its production margins.
For those tracking these stocks, the next key focus will be the upcoming quarterly financial results. These reports will provide more clarity on how Sarda Energy is managing its power segment and whether Rain Industries is seeing any relief in its core carbon products business. Investors often keep an eye on these updates to understand if the operational performance remains consistent with the growth seen in previous years.