Have you heard of Dolly Khanna investor in India? Chances are high that you have heard his multibagger stocks and how it returned huge profit. Rajiv and Dolly Khanna has a knack for identifying lesser-known quality stocks at the right time to bet for multibagger return. But do you know his background, his biography and most important of all; his investing philosophy?
Rajiv Khanna and Dolly Khanna maintains a low profile life and have no interest in giving any interview or coming for a public appearance. The only time we hear about Rajiv Khanna is when he buys 1% or more of a company as Indian law makes it compulsory for him to disclose it in the exchange.
Rajiv khanna and Dolly khanna investor in India
Let’s try to get an insight into the mystic dolly khanna investor in India. Rajiv Khanna holds portfolio in his wife Dolly Khanna’s name. We may use the name interchangeably but both points to Dolly Khanna portfolio owner.
A quick introduction:
Dolly Khanna is an investor with the golden touch. She homes in on stocks that have great potential, bets big and holds on patiently till she gets her multibaggers. But it was not a over night success.
Mr Khanna was born and brought up in middle class family in Chennai. Just like a common man he has his fair share of struggle in early life. Rajiv did well in his study and successfully qualified as a chemical engineer from IIT Madras. Later he ventured into his own milk food business and in the year 1986, started his company “Kwality Milk Foods”.
This Chennai-based investor is now worth more than few hundred crores rupees and counting. She is counted among the top individual investors on Dalal Street. Surprisingly for this media shy investor, stock investing is more of a hobby than a profession. Their main business is Milk Foods. Khannas sold their ice-cream business to Hindustan Unilever in 1995.
With the money he got after selling the ice cream business, Rajiv Khanna, started investing in the market in 1996-97 for the first time. Almost for a decade they had to struggle in stock market without much success.
Determined to rewrite the history, in 2014, he picked Nilkamal, manufactures of home and office furniture. Over the next three years, the stock has sky rocketed nearly 900 per cent. That was his first significant multibagger. After that there have been many more multibaggers picked by Dolly Khanna portfolio.
Dolly khanna Investment pattern:
1 . Preference to small companies:
Most of Rajiv and Dolly Khanna’s multibaggers belong to mid cap and small cap categories. It seems they have a strong preference for companies with smaller market capitalization.
2 . Focus on companies with products for middle class
Couple believes if a company can cater to ever rising middle class then it has a huge opportunities to grab.
3 . Concentrated portfolio
It is not possible to exactly find out how many stocks Dolly Khanna portfolio owns. But based on information available in public domain, his portfolio basket comprises of 10-15 stocks. It clearly shows the courage and conviction with which Dolly Khanna buys stocks. When he is convinced he buys a truckload of stocks.
4 . Portfolio Rotation
If you are following Dolly Khanna’s portfolio closely then you would have noticed there are frequent updates in his portfolio. He accommodates stocks, reduces his stakes, replaces low performing stocks with better performing stocks periodically.
5 . No investment in banks and Pharma stocks
Usually bank and Pharma sectors are greatly influenced by external factors. It seems Rajiv Khanna believes in stocks where macro factors have less impact.
6 . Trusting only proven companies
Each of the stocks in his portfolio is a market leader or has competitive advantage over it’s peers. He buys companies which has performed well in past like Prof. Sanjay Bakshi’s and Basant Maheshwari. It seems Dolly Khanna does not believe in buying unproven or experimental stocks like Porinju Veliyath. Unlike Vijay Kedia and Rakesh Jhunjhunwala’s investing period, Rajiv Khanna sells his stocks where the growth potential is reduced or there is something fishy in annual report even if holding period is small.
Credit: RJ Fan blog
Dolly khanna Investment Philosophy:
Unlike any other big ticket investors who talks to various management explicitly before parking their money, Rajiv Khanna looks for information available in public domain like a retail investor. He claims he does not talk to company managements before buying a stock. “We purely rely on the public information and act on it.”
When asked about the investment strategy, Khanna said, “It all depends on the underlying market condition. Like in tennis you play different games on different courts — hard court, clay court and lawn, we also study the market situation and pick our stocks accordingly. It can be either a value stock, growth stock, momentum stock or buying based on technical.” He feels market is the most complex puzzle, “It’s not the money, it’s the challenge what is exciting. Money is just the outcome. And once you start to understand the game, making money is not difficult,” he said.
If you understand and absorb completely above investing philosophy, you don’t need any other learning about stock investing from anyone else ever.
Few misconception about Dolly khanna:
Here is few misconceptions about Dolly Khanna portfolio holdings and investing philosophy.
Dolly Khanna doesn’t buy large cap stocks:
People think that Dolly Khana buys only small or midcap companies. That’s not correct, they do buy large cap stocks but it is not 1% or more. In his own language “We also have holdings in larger companies but we can’t buy more than 1% of them”
All of his stocks are multibaggers in making:
During initial period they have struggled a lot to find multibagger stocks but gradually they have improved their odds significantly. It doesn’t mean all of their stocks will perform well.
Believing one Sharekhan Selan Exploration research report in Dec 2014, Dolly Khanna aka Rajiv Khanna, bought 296,019 shares of Selan Exploration worth Rs. 11.75 Cr at the CMP of Rs. 397. After more than three years stock is trading at Rs 245.
In his own words “I am just somebody who got lucky. People just see the profits we make, nobody knows the kind of hits we have taken.”
And a final word: on a personal note:
I started investing in 2013, it’s close to 5 years now. Like any other small investors in India, I have also followed closely portfolio holdings of top investors in India and have carefully listened to what they have to say about stock market or specifically on a stock.
Initially I was copying portfolio from eminent investors in India; Gradually I realized that it’s not the best strategy to follow in stock investing. So I decided to buy stocks based only on my own analysis.
Ar present, if at all I must copy from any stock portfolio from any investor in India, it should be Dolly Khanna portfolio.
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