Whalesbook
Dolly Khanna Rebalances Portfolio, Adds Alcohol Stock While Exiting PVC Manufacturer
Veteran investor Dolly Khanna, widely known as the "Queen of Small Caps," has signaled a significant portfolio shift, marking a new entry into alcohol manufacturing and an exit from a PVC pipe producer. Filings reveal Khanna has taken a 1.13% stake in IFB Agro Industries Ltd, an alcohol and marine food producer, valued at approximately ₹15 crore.
New Venture: IFB Agro Industries Ltd
IFB Agro Industries, established in 1982, operates distilleries and bottling plants with a substantial daily capacity. While sales growth has been modest, the company's EBITDA and net profits show a strong rebound in the first half of the current fiscal year (H1FY26), hinting at a robust financial year-end. The share price has surged over 210% in the past five years, though it currently trades below its all-time high, presenting a potential entry point.
The company is strategically pivoting, aiming to scale its marine feed segment and diversify away from liquor policy uncertainties by acquiring Cargill India's Shrimp and Fish Feed Business. This move signals a focus on future growth beyond its traditional alcohol base.
Divesting Prakash Pipes Ltd
Conversely, Khanna has reduced her stake in Prakash Pipes Ltd, a PVC pipe and fittings manufacturer, below the 1% threshold, marking an end to a holding of over four years. Despite the company's reported strong return on capital employed (ROCE) and consistent sales growth, its recent EBITDA and net profit figures for H1FY26 have shown a notable decline compared to the previous year.
Prakash Pipes' share price has seen an 83% jump over five years but trades substantially below its peak. The company is undertaking capacity expansion and introducing new product lines, including HDPE drums. However, this strategic expansion has not been enough to retain Khanna's interest, contrasting with fellow investor Mukul Agrawal's continued holding in the company.
Khanna's moves, driven by her disciplined investment strategy, often influence market sentiment, particularly within the small-cap segment. The market will closely watch whether IFB Agro Industries becomes her next multibagger or if the exit from Prakash Pipes proves prescient.