Dolly Khanna, India’s Small-Cap Queen from Chennai, is known for finding value in the market’s quieter corners. Her latest portfolio moves suggest a decisive pivot away from high-velocity growth and toward rugged, old-economy value. With a portfolio currently valued at over Rs 497 cr, her signature remains a preference for high-conviction bets over the safety of the crowd.
The March quarter filings reveal three significant moves that have caught smart investors’ eyes. Khanna has staged a tactical re-entry into an old favourite, and fresh 1.09% stake in an agrochemical company. These calculated moves into the energy and agrochemical sectors mark a distinct departure from the tech-heavy narratives that dominated the market’s early-year rally.
But the timing of these moves invites a deeper interrogation of current market cycles. Is Khanna spotting a structural recovery in global commodity demand, or is this a defensive rotation into undervalued assets as broader valuations reach a fever pitch? Let us dig into the stocks to find out.
The Rs 218 cr Re-Entry – Chennai Petroleum Corporation Ltd
Incorporated in 1965 as Madras Refineries Limited, Chennai Petroleum Corporation Ltd (Current market cap Rs 16,802 cr) is a part of IOCL (Indian Oil Corporation Ltd) and is in the business of refining crude oil to produce & supply various petroleum products and manufacture and sale of lubricating oil additives.
As per trendlyne, Dolly Khanna held a stake in the company since June 2022. However, as per the exchange filings for the quarter ending June 2025, that holding dropped below 1%, hinting at a partial or complete selloff.
What has caught the attention of investors is her recent re-entry into the stock. As per fresh exchange filings for the quarter ending March 2026, Khanna has once again bought a 1.3% stake in the company worth Rs 218 cr. What could have prompted this re-entry? Let us try to dig deeper and find out.
The Turnaround Story of 1,350% Profit Growth
When Khanna sold the stock last year, the financials looked quite shaky. The operating profits had dropped from Rs 785 cr for the quarter ending March 2025 to just Rs 99 cr for the quarter ending June 2025. In the same period, the profits plummeted from Rs 470 cr to losses of Rs 40 cr. The selling decision looked like it made sense at that time.
But what followed was nothing but a turnaround. With the March 2026 numbers out already, it gives us a much clearer picture to analyse the re-entry.
The sales of the company logged a compound jump of 23% in the last 5 years, between FY21 to FY26.
| Fiscal Year | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
| Sales/Cr | 22,222 | 43,068 | 76,271 | 66,024 | 58,983 | 63,640 |
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also logged similar pattern and recorded a compound growth of 19% in the same period.
| Fiscal Year | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
| EBITDA/Cr | 2,012 | 2,732 | 5,698 | 4,476 | 1,016 | 4,757 |
The net profits also joined in the turnaround party. The table below shows the numbers for the last 5 years for a better perspective, but its noteworthy that in the trailing twelve months (TTM), the compound profit logged was 1,350%.
| Fiscal Year | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
| Profits/Cr | 257 | 1,352 | 3,532 | 2,745 | 214 | 3,103 |
As evident, after a worrisome FY25, the company probably got its act together and staged a big turnaround in FY26, possible triggering Khanna’s re-entry.
The share price of Chennai Petroleum Corporation Ltd was around Rs 110 in May 2021 and as of closing on 30th April 2026 the price was Rs 1,128, which is a jump of over 925% in 5 years. Rs 1 lac invested in the company’s shares 5 years ago today would have been close to Rs 10.25 lacs.
The company’s stock is trading at a PE of 5x, while the industry median is 16x. The 10-year median PE for the company is also 5x, while the industry median for the same period is 10x.
The ROCE (Return on Capital Employed) for the company is currently 35%, while the industry median is 13%. Which means, for every Rs 100 the company uses as capital, it generates a profit of Rs 35 on it while peers manage only about Rs 13.
The company was executing multiple value-added product initiatives, progressing on a major greenfield refinery JV, and maintaining a disciplined approach to capital allocation and governance. All eyes are set on its annual report which is expected soon.
Intangible Moat in Agrochemicals: Sharda Cropchem Ltd
Incorporated in 2004, Sharda Cropchem Ltd is principally engaged in export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts/sheets, dyes and dye intermediates to various countries across the world.
With a market cap of Rs 9,678 cr, the company has presence across 80+ countries across Europe, NAFTA, Latin America, and the Rest of the World. Dolly Khanna just bought 1.1% stake in the company worth Rs 105.4 cr as per the exchange filings for the quarter ending March 2026.
Let us look at the financials to try and find out the reason for Khanna’s interest in this agrochemical company.
Why Sharda Cropchem’s Cash Flow Narrative is Changing
The sales of the company have logged a compound growth of 17% in the last 5 years, but the trajectory is showing signs of a jump.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales (Rs Cr) | 2,003 | 2,396 | 3,580 | 4,045 | 3,163 | 4,320 |
The EBITDA also logged a compound growth of 12% in the last 5 years.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA (Rs Cr) | 350 | 450 | 696 | 659 | 303 | 615 |
The company has logged a compound growth of just 8%.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit (Rs Cr) | 165 | 229 | 349 | 342 | 32 | 304 |
What is catching the eyes of investors like Khanna is probably the turnaround the company has shown after the big drop of FY24. For the first 3 quarters of FY26 (Apr-Dec), the company has already logged EBITDA of close to Rs 590 cr and net profits of over Rs 360 cr, hinting at a strong finish to FY26. No wonder we are all waiting for the annual report and fresh financial figures.
The share price of Sharda Cropchem Ltd was around Rs 314 in May 2021 and as of closing on 30th April 2026 the price was Rs 1,073, which is a jump of over 240%.
The company’s share is trading at a current PE of 17x, and the industry median is 25x. The 10-year median PE for Sharda is 18x while the industry median for the same period is 25x. The company is possibly undervalued at the current valuations.
While Sharda Cropchem is an asset-light company, the company bleeds cash on a hidden capital expense. The endless cycle of filing, renewing, and defending global agrochemical registrations. This intangible moat is fiercely expensive. Investing cash flows reflect this chronic drain. Ultimately, this relentless regulatory treadmill consumes nearly all operating cash. For investors, the result is a highly erratic free cash flow, proving that avoiding hard assets does not guarantee capital efficiency.
A Contrarian Play on Carbon Materials: Rain Industries Ltd
Incorporated in 1974 as Tadpatri Cements Limited, Rain Industries Limited is a leading vertically integrated producer of carbon, cement and Advanced materials products.
With a market cap of Rs 4,245 cr, the company is into transforming by-products of oil and steel industries into high-value carbon-based materials essential to numerous manufacturing applications and end products.
Dolly Khanna just bought 1.1% stake in the company worth Rs 45 cr as per the exchange filings for the quarter ending March 2026.
At the first look, the financials of the company look worrying, making us think what made Khanna take a stake into it. Let us take a deeper look. Please note that the company follows the calendar year for filings.
Recovery from 2024 Losses
The sales of the company have logged a compound growth of 10% in the last 5 years
| Year | Dec 20 | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
| Sales (Rs Cr) | 10,465 | 14,527 | 21,011 | 18,141 | 15,374 | 16,946 |
The EBITDA after taking a hit in the year ending December 2023 is logging an upward trend. It has recorded a compound growth of 5% in the last 5 years.
| Year | Dec 20 | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
| EBITDA (Rs Cr) | 1,677 | 2,360 | 3,537 | 933 | 1,274 | 2,137 |
Looking at the profits, the company hit a speed breaker and logged losses in the years ending December 2023 and December 2024. However, the year ending December 2025 seems to be the year the tide turned.
| Year | Dec 20 | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
| Net Profit (Rs Cr) | 588 | 694 | 1,577 | -796 | -450 | 136 |
As we can see, the last calendar year ended at a high note for the company as at the end of December 2025, EBITDA, Sales and Profits all recorded a turnaround.
The share price of Rain Industries Ltd was around Rs 180 in May 2021 and as of closing on 30th April 2026 the price was Rs 126, which is a big drop. It is quite possible that Khanna has entered the stock at this corrected price to make the most of the turnaround.
The company’s share is trading at a trailing PE of 100x, a number significantly higher than the industry median of 15x, though this is skewed by the recent return to profitability, The 10-year median PE for Rain Industries is 9x while the industry median for the same period is 13x. Which means the market is pricing this stock at a staggering premium, hinting at over-valuation.
According to the latest investor presentation form March 2026, the company is developing alternative sources of raw-materials to achieve higher capacity utilization and improved operating performance. Plus, the management is staying prepared and watching the markets closely for an opportunity to optimise interest cost
What Dolly Khanna’s Old-Economy Pivot Means for Retail Investors
Dolly Khanna’s latest changes suggest a pivot from the speculative to the structural. By committing nearly Rs 370 crore to refining and industrial materials, she is signalling that the easy money in tech growth may have run its course. Her moves into Chennai Petroleum, Sharda Cropchem, and Rain Industries share a singular thread. They are turnaround stories found in the market’s quieter, old-economy corners.
The crowd often chases momentum until the rally peaks. In contrast, Khanna is positioning herself where the cycle is just beginning to mend. The massive profit recovery at Chennai Petroleum and the regulatory moat of Sharda Cropchem offer a safety net that high valuations elsewhere lack. Even the bet on Rain Industries shows a classic contrarian appetite for assets trading at a steep discount to their past glory.
The big question for investors is whether these moves are a defensive hedge or a savvy bet on a new commodity cycle. If the Small-cap Queen is right, the next market winners won’t be led by software and clouds. They will be companies dealing in crude, crops, and carbon. Whether the rest of the market catches the scent before the value gap closes remains to be seen.
Add these stocks to a watchlist and keep an eye on them to ensure you don’t miss out on any big movements.
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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