Dolly Khanna Bets Big on Prakash Industries: Is This Steel Stock Your Next Multibagger?
Dolly Khanna, one of India’s most followed investors, has once again stirred interest in the market. In March 2025, she increased her stake in Prakash Industries Ltd, a steel and power company, from 2.07% (37,13,174 shares), up from 14,17,996 shares in December 2024.
This move signals strong confidence in a stock that has already delivered 560% returns in the last five years, and over 205% in just two years. But is there more steam left?
Let’s dive into what makes this stock worth a closer look.
A Power-Packed Business Model
Prakash Industries operates in the steel and power sector—two industries crucial to India’s infrastructure growth. The company produces a wide range of products like:
- Sponge iron
- Steel billets
- Ferro alloys
- Wire rods
- HB wires
- TMT bars
These products cater to key industries like construction and manufacturing. Interestingly, 71% of the company’s revenue comes from its top 10 customers, showing deep B2B relationships.
Also Read: Godrej Properties Shatters Sales Record with ₹10,163 Cr in Q4 FY25
Strong Manufacturing & Resource Base
What sets Prakash Industries apart is its strong manufacturing capacity and access to captive raw materials:
- 1.20 MnTPA sponge iron
- 1.25 MnTPA steel billets
- 0.13 MnTPA ferro alloys
- 1.10 MnTPA finished steel
It also owns captive iron ore mines in Odisha and Chhattisgarh, reducing dependency on external sources and keeping costs in check.
In terms of energy, the company runs a 245 MW captive power plant in Chhattisgarh and a 6 MW windmill in Tamil Nadu—adding self-sufficiency and sustainability to its profile.
Financial Snapshot
The numbers are just as solid as its operations:
- Market cap: ₹2,800+ crore
- PE ratio: 8x (vs. industry PE of 23x)
- Price-to-book value: 0.92x
- 5-year CAGR: 50%
Also Read: After a 19-Year Streak Break, TCS Headcount Rebound Signals New Strategy
The current stock price sits at ₹159.90, slightly lower after a 1.69% dip, but still well within an attractive range given its 52-week high of ₹237.25 and low of ₹132.50.
Heavyweight Investors on Board
Besides Dolly Khanna, ace investor Mukul Agrawal also holds a significant stake—25 lakh shares, amounting to a 1.40% ownership as of March 2025.
Such investor interest often acts as a confidence booster for retail investors and institutions alike.
Market Sentiment & Stock Movement
Despite a red day on Dalal Street—with Sensex and Nifty-50 ending lower—Prakash Industries’ story continues to attract attention. On April 10, the stock traded in a tight intraday range between ₹157.45 and ₹164.85.
Given its robust fundamentals, seasoned investors like Dolly Khanna appear to be using such dips as buying opportunities.
Final Thoughts: Is This a Good Buy?
Prakash Industries may not be a household name, but its growth story is hard to ignore. With rising infrastructure demands, cost-efficient production, and heavy-hitting investors backing it, the stock shows strong long-term potential.
