Ace investor Dolly Khanna has signalled an exit in a penny stock. It is mandatory for listed companies to share the list of shareholders who hold more than a one percent stake in their company. However, Dolly Khanna seems to have reduced her stake significantly.
With a market capitalization of ₹ 266 crores and a share price of ₹ 28.00, Ajanta Soya is a penny stock. The company is primarily engaged in the business of manufacturing Vanaspati, various kinds of cooking oil and shortening products for bakeries.
The shareholding pattern of the company for the January to March quarter of 2023 showed that Dolly Khanna held 10,63,704 shares or a 1.32 percent stake in Ajanta Soya. However, her name does not appear in the shareholding pattern for the latest quarter, i.e., the March to June quarter of the financial year 2023-24. This means that she has either sold her entire stake in the company or has reduced it below one percent.
In the past three years, Ajanta Soya has delivered multibagger returns of 258 percent. However, in the past year, its share price declined by a massive 47 percent. This could be one of the reasons why the ace investor reduced her stake in the company or sold it entirely.
Ajanta Soya has a low return on equity of 1.80 percent but an ideal debt-to-equity ratio of 0.01. Its shares were trading at a price-to-earnings ratio of 100.18 which is substantially higher than the industry P/E of 21.56, indicating that the stock might be overvalued as compared to its peers. Retail investors hold a 53.09 percent stake in the company, while its promoters hold a 46.91 percent stake in it.
In the financial year FY 2022-23, the company’s revenue fell by 8.10 percent to ₹ 1236 crores as compared to ₹ 1345 crores in the previous financial year FY 2021-22. However, its profit suffered a freefall of 94.69 percent. The company reported a profit of merely 2.24 crores in FY23, as compared to ₹ 42.20 crores in FY22.
Written by Simran Bafna
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