Dolly Khanna, a Chennai-based ace investor is known for picking small-cap stocks that tend to outperform the market. Her portfolio is managed by her husband Rajiv Khanna and it typically leans towards manufacturing, textile, chemicals and sugar stocks.
Rama Phosphates, a fertilizer stock from her portfolio jumped as much as 20% on Wednesday’s early trades to reach an intraday high of ₹ 211.80 apiece on the National Stock Exchange (NSE). It was one of the top gainers in the ‘B’ Group. 1,33,849 shares had changed hands on the counter by 01: 26 PM on Wednesday.
The ace investor holds a 1.5% stake in the company as per the latest shareholding pattern for the October to December quarter of 2022. She holds 2,72,679 shares in the company and her holdings in the company were worth ₹ 5.5 crores as of Wednesday.
The company’s shares were trading at ₹ 197.90 apiece, up 12.12% at 01:32 PM. It has a market capitalization of 312 crores and is a micro-cap company. Rama Phosphates has an excellent return on equity of 29.56% and an ideal debt-to-equity ratio of 0.13. Further, its shares were trading at a price-to-earnings ratio of 7.21, which is significantly lower than the industry average of 13.25, indicating that it might be undervalued as compared to its peers.
Written by Simran Bafna
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