When two of India’s most respected market veterans make coordinated moves into a small-cap stock, the market pays attention. Prakash Industries—an integrated player in steel, power, and mining—has seen its stock chart transform into a multibagger over the last five years. And now, it finds itself in the headlines again. Because ace investors Dolly Khanna and Mukul Agrawal are both betting big on it.
The Institutional Moves: What We Know
According to the latest March 2025 quarter data, Dolly Khanna has raised her stake from 1.28% to 2.07%, purchasing an additional 14.17 lakh shares, taking her total holding to 37.13 lakh shares. This comes after a consistent accumulation pattern seen since her entry in September 2023, when she held a modest 1% stake.
Simultaneously, Mukul Agrawal, another market veteran known for early identification of multibaggers, held 25 lakh shares or 1.40% as of the same quarter. While he hasn’t added recently, his sustained position reinforces the long-term value thesis for this stock.
Why Ace Investors Are Betting?
1. A Multibagger Already
The stock price has appreciated over 560% in the last five years and 205% in the last two years. While recent price action has been range-bound (down 8% YoY, hovering around ₹160), long-term performance remains stellar. The five-year CAGR for the stock is a handsome 50%.
2. Strong Fundamentals
- Revenue & Profit Growth:Revenue has grown at a 4% CAGR over FY20–FY24 from INR 2,973.7 crore to INR 3,677.8 crore. But what’s more impressive is the 24.8% net profit CAGR in the same period from INR 118.20 crore in FY20 to INR 348.20 crore in FY24. Net margins have doubled from ~4% to 9.5%.
- Mining Trigger (Bhaskarpara Coal Block): In Feb 2025, the company started operations at Bhaskarpara Coal Mine which will reduce raw material cost and improve margins. The mine is commercial so there will be revenue from coal sales also.
- Debt Reduction: Long term debt has reduced from INR 661 crore to INR 378 crore in last 5 years showing clear financial discipline.
- Valuation Comfort: The stock is trading at 8x PE which is below 23x industry average and at 0.92 times its book value. For a company which has integrated operations, cost control mechanisms and captive raw material sources this is a strong value proposition.
Operational Strengths
Prakash Industries has 1 Lakh TPA steel production capacity along with 245 MW captive power plant and additional mining assets like Sirkaguttu iron ore mine in Odisha. The integrated nature of operations helps the company to manage cost across the value chain which is a big advantage in a commodity business.
Prakash Industries Stock Performance
On 17 April 2020, shares of Prakash Industries closed at INR 17.40 per share. In September 2023, noted investor Mukul Agrawal acquired a 1.40% stake in the company. Subsequently, the stock surged, reaching a five-year high of INR 221.09 on 30 August 2024—delivering an impressive return of approximately 1,170% from its April 2020 level. Currently, the stock is trading around INR 170 per share, reflecting a correction of approximately 23% from its recent peak.
Challenges to Watch
While the outlook is promising, investors should remain cautious of broader macro risks:
- Global Trade Uncertainty: Ongoing tariffs and trade tensions, particularly between the US and China, may impact global steel demand.
- Commodities Volatility: Metal prices are prone to sudden swings, influenced by inflation, recessionary fears, and geopolitical developments.
Conclusion
Dolly Khanna’s increased stake is not just a casual addition—it reflects high conviction in a company she has been gradually accumulating for over a year. Mukul Agrawal’s existing position adds further institutional validation. Both investors have an exceptional track record of identifying undervalued companies with turnaround potential or hidden growth.
For retail investors, this is a classic case of “follow the smart money,” but with due diligence. Prakash Industries is no longer under the radar—it’s on the watchlist of India’s most astute investors, and for good reason. With a strong financial foundation, operational leverage, new mining revenue streams, and a valuation that still offers room to grow—Prakash Industries might just be gearing up for its next big run.