Ace Investor: This Dolly Khanna pick dipped 38% in the last 2 months; Is it a great time to accumulate the stock?

Mixed Q4 results for Pondy Oxides & Chemicals Ltd.

Dolly Khanna is famously known for picking multibagger stocks which are unknown to many. She holds a portfolio of stocks worth Rs 393.6 crore. Dolly started investing in the stock market in 1996. Her portfolio contains more traditional stocks in the textile, manufacturing, chemical, and sugar sector.

Rain Industries and NOCIL Ltd are a couple of stocks that have delivered Dolly Khanna multibagger returns. Recently, she added a fresh position in stocks like Pondy Oxides & Chemicals Ltd, Sandur Manganese & Iron Ores Ltd, Goa Carbons Ltd, Goa Carbons Ltd, Sharda Cropchem Ltd, Nahar spilling Mills Ltd, Southern Petrochemicals Industries Corporation Ltd, and Khaitan Chemicals & fertilizers Ltd.

One of the stocks that have fallen most from her portfolio is Pondy Oxides & Chemicals Ltd. The shares of Pondy Oxides & Chemicals Ltd have fallen more than 38 per cent in less than 2 months. On April 19 2022, the stock made a 52-week high of Rs 930.

She had purchased a stake in the company in the March quarter ending. The company announced decent Q4 results last week. The company reported Q4 sales at Rs 397 crore, a 33% YOY growth. On a YOY basis, net profit more than doubled for the company.

Despite delivering strong revenue and net profit YOY growth, the stock is underperforming due to weak QoQ profitability for the company. On this, the company’s Director of Finance, K Kumaravel, commented that QOQ profitability numbers are weak due to balancing figures between the last three quarters and the audited results.

Pondy Oxides & Chemicals Ltd (POCL) is India's leading lead, lead alloys and plastic additives producer. Melting lead scraps and converting them into lead metal and alloys is the primary function of the company.

The company has a market capitalization of Rs 332 crore. Talking about valuations, the stock is trading at 6.87x PE. On June 9 2022, at 11:33 am, the stock is trading at Rs 566.55.