Dolly Khanna Buys Stake in This Smallcap Company

In the vast expanse of the night sky, the pole star has long been a beacon for travelers. It offers a fixed point of reference to guide them on their journeys.

Similarly, the actions of ace investors can serve a guiding light in the dynamic landscape of the stock market. Their well-researched decisions act as a compass for retail investors, helping them navigate the often-choppy waters of the financial world.

In this article, we'll explore one such instance where a prominent investor's move can inform your investment strategy. We'll delve into the recent news of Dolly Khanna, a renowned ace investor, acquiring a stake in a small-cap company.

Before we get into the details, let's first get to know Dolly Khanna.

Who is Dolly Khanna?

Dolly Khanna is a Chennai-based investor who is known for picking lesser-known midcaps and smallcaps. She has been investing in stocks since 1996.

Dolly Khanna's portfolio, managed by her husband, Rajiv Khanna, is usually inclined towards more conventional stocks in manufacturing, textile, chemical, and sugar stocks.

Why Did Dolly Khanna Buy this Textile Stock?

The stock in question is Super Sales.

The company, Super Sales India, manufactures yarn and gears, while also providing agency services in the textile industry.

According to the latest shareholding pattern of Super Sales, Dolly Khanna added over 1% stake in the company. As on 30 June 2024 her total stake in the company stood at 1.1%.

Before this her name did not appear in the shareholders of the company.

While we don't know why she added shares of Super Sales, there are some reasons that we can guess.

Super Sales India has a diverse business portfolio, including textiles, engineering, and wind energy. This diversification helps reduce risks and provides multiple revenue streams.

The textile sector is experiencing a resurgence. There is increasing demand for garments and textiles both domestically and internationally.

The Indian government's support for the textile industry, through initiatives such as the Production Linked Incentive (PLI) scheme, further boosts growth prospects.

The company has an established presence in the industry. It has strong production capabilities and long-standing relationships with suppliers and customers. This gives it a competitive edge.

The company's engineering division manufactures textile machinery, spares, and accessories. This complements its core business and enhances its value proposition.

In the engineering segment, Super Sales is expanding its product range and improving production efficiency. This segment meets the increasing demand for high-quality machinery, spares, and accessories. The focus on innovation and quality can drive growth and profitability in this segment.

The wind energy sector, although a smaller part of the business, represents significant growth potential. With the global shift towards renewable energy, it is investing in expanding its wind power capacity. This can contribute to long-term sustainability and revenue diversification.

The company also has a substantial asset base. This includes significant holdings in other companies like Lakshmi Machine Works and Indian Overseas Bank. This provides a cushion against market volatility and underscores its financial stability.

The general bullishness in the textile sector adds to the attractiveness of the company. The global textile market is experiencing robust demand. Factors such as increasing disposable incomes, changing fashion trends, and the rise of e-commerce are driving demand.

Indian textile companies are well-positioned to capitalise on this. They have cost advantages and strong production capabilities. The company, with its diversified operations and strong market presence, stands to benefit from these favorable market conditions.

How Super Sales Share Price has Performed Recently

In the past five days, Super Sales share price has rallied 5.6%. In the last month, it is up 18.9%.

In 2024, so far its share price has surged 56.5% and its up 81.5% in the last one year.

The stock touched its 52-week high of Rs 2,149 on 23 May 2024 and a 52-week low of Rs 980 on 26 October 2023.

About Super Sales

Super Sales operates in multiple sectors, including textiles, engineering, and wind energy. The company has established itself in the textile industry, producing a range of yarns, fabrics, and garments for both domestic and international markets.

In addition to textiles, it has an engineering division that manufactures textile machinery spares and accessories. This segment complements its textile operations, providing integrated solutions that support the broader textile industry.

Super Sales also engages in the renewable energy sector with its wind energy division. This segment aligns with the growing focus on sustainable energy sources, adding diversity to the company's operations.

To know more, check out Super Sales's financial factsheet and latest quarterly results.

For a sector overview, read our textiles sector report.

You can also compare Super Sales with its peers on our website:

Super Sales vs DCM

Super Sales vs Uniworth

Super Sales vs Trident

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...