Dolly Khanna Trims Stake in Multibagger Stock! Pondy Oxides Hits 5% Lower Circuit After Two Days of Sharp Losses

Famed investor Dolly Khanna has trimmed her stake in Pondy Oxides and Chemicals, a chemical stock that recently saw its price hit the 5% lower circuit at ₹1,008.30 in intraday trading on Monday, October 21. This marked the second consecutive day of sharp losses, following another 5% drop in the previous session.

Stake Reduction Details

According to the September quarter’s shareholding pattern data, Dolly Khanna reduced her holdings in the company by about 14.4%. As of the most recent data, she now owns 1,46,297 shares, equating to a 1.12% stake. Earlier, for the quarter ending August 2, 2024, Khanna held 1,70,974 shares, or a 1.31% stake in the company.

Dolly Khanna’s Investment Strategy

Known for her sharp ability to select small-cap stocks that eventually deliver strong returns, Dolly Khanna attracts attention from retail investors. These investors often track her portfolio closely, analysing shareholding patterns to understand her investment decisions and moves.

Khanna’s name did not appear in the company’s June-quarter shareholding data. This could be because, during that period, her stake was likely less than 1%, which under exchange rules, does not require a mandatory disclosure by the company.

Multibagger Returns

Pondy Oxides and Chemicals, a producer of lead, lead alloys, and plastic additives, has delivered multibagger returns of around 351% over the last year. The stock reached its 52-week high of ₹1,191.03 on September 5, 2023, following a low of ₹196.50 in December 2022.

On October 16, the company reported stellar financial results, with revenue increasing by 45.93% year-over-year and profits soaring by 168.25%. Moreover, selling, general, and administrative expenses fell by 8.54% quarter-over-quarter and 12.79% year-over-year, driving the profit surge.

Share Split and Fundraising Plans

The company’s board approved a share split, reducing the face value of its equity shares from ₹10 to ₹5 each, effective October 16, 2024. This move aims to increase liquidity and make the shares more accessible to smaller investors. Additionally, the board has approved plans to raise up to ₹250 crore through a qualified institutional placement (QIP) to strengthen its financial position.

What This Means for Investors

The reduction in Dolly Khanna’s stake in Pondy Oxides has sparked interest among investors, especially those who follow her portfolio to identify potential investment opportunities. Her decision to pare down her holdings may signal a cautious approach, but it is yet to be seen how this will impact the company’s performance in the coming quarters.