Dolly Khanna Picks Up 1.16% Stake in this Smallcap company
Renowned investor Dolly Khanna strategically added the small-cap stock Indian Metals & Ferro Alloys (IMFA) to her portfolio in the quarter ending on December 31, 2024. She acquired a 1.16% stake, equivalent to 623,464 shares in the company.
Over the past 12 months, shares of Indian Metals & Ferro Alloys have surged by nearly 80%, surpassing the Nifty index, which has seen returns of approximately 12% during the same period. As of Friday, the stock closed at Rs 901.30 on the BSE, marking a decrease of Rs 9.20 or 1.01% from the previous day’s closing price.
Currently, the stock is trading above its 50-day and 200-day simple moving averages (SMAs) of Rs 821 and Rs 729, respectively. Despite this, the stock has exhibited significant volatility, with a 1-year beta of 1.5 according to Trendlyne data. The company boasts a market capitalization of Rs 4,862.88 crore.
On December 9, 2024, Indian Metals & Ferro Alloys reached its 52-week high of Rs 998.40, while its 52-week low of Rs 472 was recorded on December 18, 2024.
Established in 1961 in the resource-rich state of Odisha, IMFA is a leading producer of value-added ferrochrome with 190 MVA installed furnace capacity and 204.55 MW captive power generation capacity, including 4.55 MW from solar sources. The company also holds extensive chrome ore mining tracts.
Dolly Khanna, a prominent investor based in Chennai, has been actively involved in the stock market since 1996. Her portfolio, managed by her husband Rajiv Khanna, includes investments in manufacturing, textile, chemicals, and sugar stocks. As per the latest corporate shareholdings data
Who is Dolly Khanna?
Dolly Khanna is a Chennai-based investor renowned for her astute stock-picking abilities. Along with her husband, Rajiv Khanna, she has built a reputation as a formidable name in the Indian equity markets. Known for her investments in lesser-known smallcap and midcap companies, Khanna has a knack for identifying undervalued businesses with strong growth potential. Her portfolio often reflects a diverse mix of sectors, including chemicals, manufacturing, and consumer goods, making her one of the most closely followed investors by retail and institutional players alike.
Over the years, stocks like Rain Industries, Cera Sanitaryware, and Butterfly Gandhimathi Appliances have gained significantly after her investments, earning her the tag of a “value investor with a midcap tilt.” Her investment decisions often send ripples through the markets, drawing attention to the companies she bets on.
About Indian Metals & Ferro Alloys (IMFA)
Indian Metals & Ferro Alloys (IMFA) is one of India’s leading producers of ferro alloys, a critical input in the production of steel. Established in 1961 and headquartered in Bhubaneswar, Odisha, IMFA operates state-of-the-art manufacturing facilities and has a vertically integrated business model. This includes captive mining, power generation, and ferro alloy production, making it a cost-efficient player in the industry.
Key Highlights of IMFA:
- Product Portfolio: IMFA specializes in the production of ferro chrome, a key ingredient used in stainless steel manufacturing. With a significant export presence, the company caters to global markets in Europe, Asia, and the Americas.
- Captive Power: The company operates its own thermal and renewable energy plants, ensuring uninterrupted power supply for its energy-intensive operations.
- Sustainability Focus: IMFA has been emphasizing environmental sustainability through initiatives like water recycling, afforestation, and transitioning to cleaner energy sources.
- Financial Performance: Despite being a smallcap, IMFA has demonstrated resilience in navigating industry cycles. In recent quarters, the company has shown steady revenue growth, driven by firm demand for ferro chrome and favorable commodity prices.
Market Reaction and Outlook
Following the news of Dolly Khanna’s stake acquisition, shares of IMFA saw a surge in trading volume, reflecting heightened investor interest. Historically, stocks in which Khanna invests often witness increased market attention, with her endorsement seen as a seal of quality.
For IMFA, the spotlight from such a high-profile investor comes at a time when the company is well-positioned to capitalize on favorable industry trends. With its strong operational capabilities and strategic focus on sustainability, IMFA could attract more institutional and retail investors in the near future.
Conclusion
Dolly Khanna’s investment in Indian Metals & Ferro Alloys highlights her continued focus on identifying niche opportunities in the Indian market. For investors, this serves as a reminder of the potential that smallcap stocks can hold when backed by strong fundamentals and growth prospects. While IMFA’s journey forward will depend on industry dynamics and execution, the endorsement from one of India’s most respected investors adds an undeniable boost to its market narrative.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.