Ace Investor: Dolly Khanna bought a stake in this woven apparel company; do you own it?

This company’s revenue grew by 45% in FY22.

Dolly Khanna is renowned for making unique investments that frequently outperform the markets. Since 1996, she has been making stock market investments. She presently owns 26 stocks with a total value of Rs 576.5 crore. She typically makes investments in companies that are operating in more traditional industries such as textile, manufacturing, refineries, etc.

Rajiv Khanna, her husband, supports her in managing her portfolio. Indian investors highly value the market understanding of this couple, keeping close attention to the investment moves that they make, such as adding new stock to their portfolio. According to June quarterly filings, Dolly Khanna has bought a 1.8% stake in Monte Carlo Fashions Ltd. The company belongs to BSE group ‘B’ and has a market capitalization of Rs 1,630 crore.

Under the name "Monte Carlo," which has also been designated as a "Superbrand," Monte Carlo Fashions Ltd produces fashionable ready-to-wear made of wool or cotton and trades ready-to-wear made-up other materials. The company is a part of the Nahar group of companies. Nahar Industrial Enterprises and Nahar Spinning Mills are the other two listed companies that are also part of Nahar Group.

Talking about company results, the FY22 revenue stood at Rs 904, a 45% growth from Rs 622 crore figure reported in FY21. The net profit number also increased significantly by 72.72% YOY to Rs 114 crore from Rs 66 crore.

The 3-year sales and net profit for the company stood at 11% and 24%, respectively. As per the March period ending, the company has an ROE, ROCE, and dividend yield of 21.5%, 17.7%, and 1.9%, respectively. The shares of Monte Carlo Fashions Ltd are trading at a PE of 14.2x.

The stock has a 52-week high and low of Rs 843 and Rs 309, respectively. On July 25, the stock opened at Rs 807.95 and so far, at 11:30 am, is trading at Rs 783.05 with an intraday high and low of Rs 807.95 and Rs 778.5, respectively.