Ace investor Dolly Khanna is known for buying a stake in lesser-known stocks that tend to outperform the market. Her husband Rajiv Khanna manages her portfolio, which typically leans towards traditional stocks in manufacturing, textile, chemicals and sugar stocks.
Dolly Khanna recently increased her stake in Talbros Automotive Components, a small-cap auto ancillaries stock engaged in the business of manufacturing gaskets and forging.
The veteran investor held 1,26,715 shares or a 1.03 percent stake in the company as of the fourth quarter of FY 2022-23. However, the shareholding pattern for the first quarter of FY 2023-24, shows that she holds 1,85,715 shares or a 1.50 percent stake in the company, which means that she has increased her stake in the company.
In addition to Dolly Khanna, ace investors Vijay Kedia and Sanjeev Parekh also hold a stake in the company. Vijay Kedia holds 1,50,000 shares or a 1.22 percent stake, while Sanjeev Parekh holds 1,42,681 shares or a 1.16 percent stake.
Over the last year, Talbros Automotive Components received new multi-year orders over Rs 1,000 crore from both domestic and overseas customers across its business divisions, product segments and joint ventures (JVs). These orders are to be executed over the next five years and will help the company to increase its market share.
On Tuesday, the company’s shares settled at ₹ 729.80 apiece. With a market capitalization of ₹ 914 crores, Talbros Automotive Components is a small-cap company. It has an ideal return on equity of 16.60 percent and an ideal debt-to-equity ratio of 0.24. Its shares were trading at a price-to-earnings ratio (P/E) of 16.44, which is significantly lower than the industry P/E of 43.34, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 58.42 percent stake in it, followed by retail investors with 41.56 percent and other domestic institutions with 0.02 percent.
Written by Simran Bafna
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