Dolly Khanna increases stake in high-performing stock despite 165% rally
Ace investor Dolly Khanna has increased her stake in Prakash Pipes from 2.78% to 3.24% during the July-September 2023 quarter, as per the latest portfolio update. The Chennai-based investor now holds 7,74,451 shares in the company. Khanna has increased her stake even though the stock has more than doubled this year. On Monday, Prakash Pipes shares reached a new all-time high of Rs. 405.10 apiece on the National Stock Exchange (NSE).
Stock performance and recent gains
Prakash Pipes has been providing impressive returns to its investors lately. Just last week, the stock price jumped from Rs. 254.20 to Rs. 405.10 per share on NSE, generating a return of roughly 60%. Over the past six months, the stock has climbed from Rs. 152.90 to Rs. 405.10 per share, yielding a return of around 165%. Year-to-date (YTD), the stock has surged from Rs. 166.55 to Rs. 405.10 per share, offering investors a near 143% return.
Q1 financial results and market reaction
For the quarter ending June 2023, Prakash Pipes reported a year-on-year (YoY) decline in net sales at Rs. 175.56 crore, down 8.55% from Rs. 191.98 crore in June 2022. The company's net profit fell by 26% to Rs. 18.47 crore, while its EBITDA decreased to Rs. 24.37 crore in June 2023, down 38.19% YoY. Despite these declines, the stock continued to perform well in the market.
Company background and business operations
Prakash Pipes specializes in manufacturing and distributing PVC pipes and fittings, as well as flexible packaging solutions. The company has been operating for several years and has built a strong presence in the Indian market. Its products cater to various sectors, including agriculture, infrastructure, and industrial applications.
Investor outlook and future prospects
With Dolly Khanna's increased stake in Prakash Pipes, retail investors might take note of the stock's robust performance and growth potential. As the company continues to expand its operations and product offerings, it could attract more interest from both institutional and individual investors. However, it's crucial for investors to conduct thorough research and analysis before making any investment decisions.
