Dolly Khanna portfolio: This multibagger zoomed over 300% in 1 year; do you own it?

Shares of Pondy Oxides and Chemicals Limited, Dolly Khanna's newest bet, have delivered a multibagger return to its shareholders in the last 12 months.

In the past one year, the share price of the company jumped from Rs 212.8 to reach the Rs 920-mark ---- logging more than 330 per cent return in this period. The stock jumped over 5 per cent to hit an all-time high of Rs 920 on BSE in an otherwise weak market today.

Long-term investors have made big gains by investing in this small-cap stock as it has surged around 3,600 per cent in the last ten years.

With a market capitalisation of Rs 520 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

As per the shareholding pattern available on BSE, Dolly Khanna, the Chennai-based marquee investor held 2,11,461 shares, or 3.6 per cent stake, in the company at the end of March quarter.

Khanna has been investing in the domestic stock market since 1996 and her portfolio is entirely managed by her husband Rajiv Khanna. She has a knack for identifying lesser-known quality stocks at the right time to bet for multibagger returns.

Pondy Oxides and Chemicals Limited reported a 344 per cent year-on-year rise in its net profit for October-December quarter at Rs 14 crore. Revenue from sale of products and services grew 41 per cent to Rs 413 crore.

Kranthi Bathini, Equity Strategist at WealthMills Securities noted that exuberance around the stock is because the company extracts lead from scrap batteries and reuses the same after refining. He added that the investors with high-risk appetite can enter the stock at this point in time.

"Pondy Oxides is currently indicating the inherent strength in the counter and is trading well above the major long-term support levels. On the Bollinger band (20,2) the stock price is trading above the mean with the upper band facing in the northward direction indicating the price is likely to move higher," Dr. Ravi Singh-Vice President and Head of Research-ShareIndia told Business Today.

"Analyzing the recent volume price action, the volumes have been encouraging in the recent up move indicating strong hands have started accumulating the stock at current levels. On the oscillator’s side, RSI (14) is trading in a comfortable zone of above 50 levels indicating the intact bullishness in the stock. We expect the counter to continue its outperformance in the coming trading days as well and may move towards 1100 - 1150 levels in the near term," he added.

Domestic brokerage firm Progressive continues to remain positive about demand for lead as a metal with sustained support from the automotive and construction industries.

"For the next year, we intend to scale up our operations in copper business in order to maximise the top and bottom line. We expect the lead business to grow at a CAGR of 25 per cent plus and make positive headway into a sustainable and green technology along with expansion of our portfolio in non-ferrous segments and expansion into other verticals as well," said Ashish Bansal, Managing Director of Pondy Oxides and Chemicals Limited.

Commenting on the results, Kumaravel, Director Finance and Company Secretary said, "The increase in top line is driven by healthy growth on volumes and realisation coupled with a lower base of last year, while improvement in operating margin is on the back of completion of augmentation of smelting facilities which will help in operating margin reverting to fiscal 2019 levels."

"The company is expected to achieve operational revenue of around Rs 1,400 crore in financial year 2022 with a margin of over 6 per cent, an increase of 39 per cent on a year-on-year basis. This is a forward-looking statement and based on our projections only," he added.