Dolly Khanna Trims Prakash, GHCL Stakes Amid Sales Downturn
Overview
Renowned investor Dolly Khanna has reduced her stakes in Prakash Industries and GHCL Ltd. The moves come as both companies report declining sales, raising questions about investor sentiment and future performance. Khanna, known for her small-cap focus, still retains a position in both firms, suggesting potential for a future rebound.
Stocks Mentioned
Dolly Khanna Adjusts Portfolio
Dolly Khanna, a prominent investor frequently dubbed the "Queen of Small Caps," has made adjustments to her portfolio, trimming stakes in Prakash Industries Ltd and GHCL Ltd. Her investment strategy is closely watched by market participants who seek to identify potential multibagger stocks.
Prakash Industries Ltd Reduction
Khanna's holding in Prakash Industries Ltd, a manufacturer of steel products and power generation, has been reduced to 2.6% as of the quarter ending December 2025. This follows a prior increase in her stake, which stood at 2.9% in September 2025. The company, with a market cap of Rs 2,436 crore, has seen its sales grow at a compound rate of 6% from FY20 to FY25, reaching Rs 4,014 crore. Net profits, however, have shown a stronger compounded growth of 25% over the same period, amounting to Rs 355 crore in FY25. Despite robust net profit growth, a significant 33% year-on-year decline in sales for the quarter ending September reportedly served as a fundamental headwind, contrasting sharply with competitors like JSW and Jindal Stainless, which reported sales growth.
Prakash Industries' share price has seen a rise of over 126% in five years, reaching Rs 136 as of January 12, 2026. The stock trades at a Price-to-Earnings (PE) multiple of 8x, significantly lower than the industry median of 22x. Notably, fellow investor Mukul Agarwal maintains a steady stake in the company.
GHCL Ltd Stake Trim
Similarly, Khanna has trimmed her stake in GHCL Ltd, a leading Indian manufacturer of Soda Ash, to 1.1% for the quarter ending December 2025. She had initially acquired a 1% stake in March 2025, and her holding had seen minor increments. GHCL, with a market cap of Rs 5,034 crore, holds over 26% of the Indian Soda Ash market. Financials for GHCL have shown volatility; while sales were Rs 3,183 crore in FY25, they have experienced a choppy trend over the last five years. EBITDA and net profits have also seen fluctuations, with net profits at Rs 624 crore in FY25. Despite a current dividend yield of 2.2% and a significant reduction in debt from Rs 1,250 crore to Rs 96 crore over five years, the shrinking sales and profits appear to be the primary drivers for Khanna's stake reduction.
GHCL's share price has appreciated by approximately 175% since January 2021, trading at Rs 548 on January 12, 2026. The company's PE is 9x, well below the industry median of 19x, suggesting potential undervaluation. However, the downward trend in top-line performance has likely influenced Khanna's strategic decision, despite her continued investment in the company.
