Dolly Khanna, a Chennai-based investor is known for investing in lesser-known stocks that tend to outperform the market. In fact, many of them have generated multibagger returns. Here are a few undervalued multibagger stocks held by the ace investor:
The price to earnings ratio of these stocks is lower than their industry average, indicating that they are undervalued as compared to their peers.
Pondy Oxides and Chemicals
Dolly Khanna has a 3.1% stake in Pondy Oxides and Chemicals as per the latest shareholding pattern. She holds 3,62,669 shares that are currently worth ₹ 12.4 crores.
Pondy Oxides and Chemicals’ shares have given multibagger returns of 212.36% as its share price increased from ₹ 110.13 to ₹344.00 apiece. If an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 3.12 lakhs today!
The company converts lead scraps of various forms into lead metal and alloys. In addition, it manufactures zinc metal and zinc oxide. It has a market capitalization of ₹ 412 crores and is a small cap company. It has a price to earnings ratio of 8.59, which is lower than the industry average of 11.58, indicating that the stock might be undervalued as compared to its peers.
Deepak Spinners
The ace investor holds a 1.2% stake in Deepak Spinners or 83,263 shares as per the latest shareholding pattern of the company. Her holdings are currently worth ₹ 1.9 crores.
The company’s shares have given multibagger returns of 191.86 % as its share price increased from ₹ 80.50 to ₹ 234.95 apiece in two years. If an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 3.12 lakhs today!
Deepak Spinners is a textile manufacturing company that is engaged in producing synthetic staple fibres yarn, man-made fibres blended yarn and other types of yarn. It has a market capitalization of ₹ 169 crores and is a small cap company. It has a price to earnings ratio of 3.51, which is significantly lower than the industry average of 60.65, indicating that the stock might be undervalued as compared to its peers.
Chennai Petroleum Corporation
Dolly Khanna holds a 2.2% stake in Chennai Petroleum Corporation or 32,76,408 shares as per the latest shareholding pattern of the company. Her holdings are currently worth ₹ 80.7 crores.
The company’s shares have given multibagger returns of 170.96 % as its share price increased from ₹90.75 to ₹ 245.90 apiece in two years. If an investor would have invested ₹
1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 2.70 lakhs today!
Chennai Petroleum Corporation is engaged in the business of refining crude oil to produce & supply various petroleum products and manufacture and sale of lubricating oil additives. It has a price to earnings ratio of 1.00, which is significantly lower than the industry average of 5.80, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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