In the ever changing landscape of Indian equity markets, few names command as much respect among retail investors as Dolly Khanna, the Chennai-based investor whose stock picking has beaten the market time. Known for finding high growth potential in under the radar smallcap stocks, Khanna has again made a notable move—increased her stake in Mangalore Chemicals & Fertilizers (MCFL), indicating confidence in the company’s fundamentals and the future of India’s agri-input sector.

Accumulation: Numbers Behind the Move

BSE filings reveal that, Khanna holds a 2.18% stake in Mangalore Chemicals, up from 1.75% in the previous quarter. This is an additional 5,19,000 shares, taking her total holding to 25,87,360 shares.

Such a move is especially significant as the stock had already shown good upward momentum in the last few months but Khanna’s accumulation implies that she sees more value unlocking.

What adds weight to this move is the broader market context. Even as global markets are witnessing volatility due to FII sell off, rising interest rates and geopolitical trade tensions, Khanna’s bet on Mangalore Chemicals is a bet on the long term structural growth of the fertilizer and agri-input sector.

Stock Performance

Mangalore Chemicals & Fertilizers has been one of the best performers in the smallcap space and its recent upmove only adds to the story:

• 1 Year: +66%
• YTD: +27.54%
• 6 Months: +45%
• 1 Month: +37.52%
• 5 Days: +17%
• 5 Year: An eye-popping 580% from INR 29 to an all-time high of INR 199 (15 April 2025)

Currently, the stock is trading at INR 194.61 per share, still near all-time highs and showing strong institutional and retail momentum.

Financial Fundamentals

MCFL’s recent earnings report paints a picture of solid growth and operational strength:

• Net Sales: INR 967.66 crore, a 51.05% YoY increase
• Profit After Tax (PAT): Up 74%
• Return on Capital Employed (ROCE): A healthy 15.7%
• EV/Capital Employed Ratio: 1.9 — indicating capital efficiency

These numbers are not mere accounting tricks. They point to a genuine operational uplift, likely driven by a favorable monsoon forecast, increased government support for agri-input subsidies, and expanding domestic demand in southern India—MCFL’s key market.

However, the picture isn’t entirely risk-free. The company carries a Debt-to-EBITDA ratio of 2.9x, and a notable portion of promoter shares are pledged, indicating potential leverage stress. These are red flags that prudent investors must monitor closely.

Ownership Structure

The current shareholding structure of MCFL shows a healthy mix of promoter and institutional confidence:

• Promoters: 60.63%
• Public Shareholding: 39.37%
• Among public shareholders, HSBC Focused Fund holds a 4.93% stake, equal to 58,44,618 shares

This institutional interest further strengthens the investment narrative, suggesting that MCFL is not merely a retail-driven momentum stock but one being closely tracked by serious long-term players.

Dolly Khanna’s Investment Philosophy in Action

Khanna’s portfolio reveals a clear inclination toward companies with:

1. Undervalued balance sheets
2. Turnaround potential or industry tailwinds
3. Strong promoter background and niche positioning

Her increased investment in MCFL mirrors her historical bets on companies like Rain Industries, Nilkamal, and PPAP Automotive—stocks that initially flew under the radar but later delivered multifold returns.

Khanna’s other known holdings include:

• Prakash Pipes (3.7%)
• Emkay Global (2.8%)
• Zuari Industries (1.9%)
• KCP Sugars (1.8%)

It is interesting to note that Zuari Industries is part of the same business ecosystem as MCFL, both falling under the Adventz Group, suggesting Khanna’s confidence in the broader synergies within the conglomerate.

Sectoral Outlook

India’s fertilizer industry is expected to witness steady growth, driven by increasing food demand, rising awareness around crop yields, and government-led support for domestic urea and nutrient production.

Furthermore, the PLI (Production-Linked Incentive) schemes and reduced dependence on imports of key raw materials like ammonia and urea are positioning local players like MCFL to capture a bigger market share.

The Adventz Group, under which MCFL operates, is also actively focusing on backward integration and supply chain modernization—critical steps for sustaining profit margins in an otherwise commoditized sector.

Conclusion

Dolly Khanna’s stake increase in Mangalore Chemicals & Fertilizers is more than a routine portfolio update—it is a signal of conviction in a stock that combines financial momentum, favorable industry tailwinds, and growth runway. While short-term traders may be tempted to cash in on recent gains, long-term investors would do well to study the fundamentals that attracted Khanna in the first place.

With a five-year price appreciation of nearly 600%, robust earnings growth, and increasing institutional interest, Mangalore Chemicals is no longer a backbencher—it’s very much in the spotlight. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.