01 Oct , 2021 By : Kanchan Joshi
Multibagger stock: Dolly Khanna portfolio stock Rama Phosphates is one of the 7 stocks that Chennai-based investor added in her portfolio in April to June 2021 quarter. The fertilizer manufacturer company has been giving stellar return to its shareholders throughout the year. It is one of the multibagger stocks in 2021.
This multibagger stock in Dolly Khanna portfolio surged from Rs59.55 to Rs303 apiece in Year to Date (YTD) period i.e. in 2021 — logging around 220 per cent rise in YTD time.
According to market experts, the stock still looks bullish as the company reduced its debt by around 75 per cent in FY21 and today it is almost a debt-free company. They advised investors to buy the counter at current levels for Rs600 target in long-term. However, Rs350 to Rs400 is immediate hurdle zone for the Dolly Khanna counter.
Expecting further rise in this multibagger stock; Rahul Sharma, Co-founder at Equity99 said, "Company has a super ROCE of 29.4 per cent & ROE of 22.7 per cent. Company reduced its debt by 75 per cent in FY21 and is almost debt-free with a DE ratio of 0.03. Company's PAT has grown at 98 per cent CAGR over the last 3 years. It has been consistently generating positive Operating cash flows and has been investing it which can be seen in its fixed assets column which increased from 43 crore to 72 crore. Company is available at a PE multiple of just 9.69 against industry PE multiple of 11.7. We expect this counter to reach target price of Rs375 apiece."
Santosh Meena, Head of Research, Swastika Investmart Ltd said, "Technically, the counter is witnessing some correction after a strong run up. The overall structure is very bullish and the correction is buying opportunity where Rs260 will be important trend line support to take fresh entry. On the upside, it may again head towards Rs600 level where Rs350 to Rs400 will be intermediate resistance zone."
Dolly Khanna share holding in Rama Phosphates
AS per shareholding pattern of this multibagger stock for April to June 2021 quarter, Dolly Khanna holds 3,12,509 shares of the company, which is around 1.77 per cent of total issues of company's net paid up capital. The Chennai-based ace investor bought this stake in Rama Phosphates during April to June 2021 quarter.
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