Dolly Khanna portfolio has a number of mid-cap and small-cap stocks.
The stocks are bought because of their fundamental characteristics of growth and valuations.
Dolly Khanna buys a stock after careful evaluation to see whether the stock has good management, good product, good track record, growth potential, extent of competition and other factors.
The valuations of the stock are given specific attention to by Dolly Khanna so as to ensure that there is adequate margin of safety when the stock is bought.
Latest Stock Investment Buys By Dolly Khanna
Dolly Khanna has bought two stocks recently:
(i) Sterling Tools
Sterling Tools Limited is a manufacturer of fasteners in India. It has an installed capacity of 21,000 MT pa. It has already set up its third facility at Prithila Village, Tehsil – Palwal in Haryana, involving an investment of Rs. 400mn that added a capacity of 6,500 MT.
The market share of Sterling Tools is 25%.The manufacturing facilities are located at Faridabad, Haryana & at Prithla in NCR, Delhi.
The fasteners market is looking for quality, cost and delivery. The market will demand more and more sophisticated fasteners as the OEM launch latest products in India. The, warranty and environmentally emission control requirements will drive this demand phenomenon. This will improve the top-line and bottom-line of Sterling Tools.
About 95% of the demand of cold forged high tensile fasteners industry in India is from the the automobile, general engineering, consumer durables, railways and auto replacement market. About 75% of the demand is from the automobile manufacturers. The replacement market, consumer durable segment, general / railways engineering goods account for remaining 25% of the high tensile fasteners market.
The fasteners industry has been growing at a rate of 12-15% p.a. for last three years. The Indian economy is expected to register GDP growth rate of around 7-8% per annum, over the next few years. The opportunities for growth in demand for high tensile fasteners in India are encouraging. Further the exports from India have good prospects.
The automobile industry has grown by almost 14% during the financial year 2005-2006.
The growth in the passenger car, motorcycle & commercial vehicle segment was 7%, 15% & 12% respectively in FY 2005-2006.
Dolly Khanna has bought 82,824 shares of Sterling Tools in the June 2016 quarter.
PPAP Automotive Ltd:
PPAP Automotive Ltd is a manufacturer of sealing systems and Interior and Exterior Injection Molded Products. PPAP has five manufacturing facilities which are located in New Delhi, Noida, Greater Noida, Pathredi in Rajasthan and Chennai. It supplies to all the major OEMs.
It is the single biggest supplier of automobile sealing systems to Maruti Suzuki, Honda, General Motors, Toyota, Renault Nissan, Tata Motors, Ford India and Mahindra and Mahindra Limited.
Tokai Kogyo Co. Ltd, Japan provides to PPAP technology for development and manufacturing of Automotive Sealing Systems and Injection Molding parts.
In Automotive Sealing System and Electric products, Tokai Kogyo Co is a pioneer. It has manufacturing operations in Japan, USA, Thailand, Indonesia, China, Mexico and Vietnam.
A JV has been formed between Tokai Kogyo Co and PPAP for the manufacture of EPDM Rubber Sealing Systems and TPV Glass Run Channel.
PPAP also has a technology transfer agreement with Nissen Chemitec Corporation for development and manufacture of Injection Molded Exterior and Interior products.
Dolly Khanna has bought 1,49,262 shares of PPAP Automotive in the June 2016 quarter.