Dolly Khanna dumps stake in this beaten microcap stock

January 16, 2026

The busiest phase for the markets is back with the start of the earnings season.

This is the period when publicly traded companies open their books every quarter and report key details such as sales, profits, costs and management prospects.

For investors, these figures serve as a reality check as to whether a company’s growth story is still intact.

While many investors closely monitor financial performance, stock ownership is one aspect that continually draws the attention of retail participants.

Every quarter, companies must disclose data on shareholders who own more than 1% of the shares. These announcements often include the names of well-known or “superstar” investors, making them a major focus during earnings season.

Some market participants follow these investors closely and in some cases attempt to mirror their investment decisions in the hope of generating similar returns. One of the most followed names in this space is top investor Dolly Khanna.

According to shareholding disclosures for the December 2025 quarter, the superstar investor has sold her stake in a beaten microcap stock.

Who is Dolly Khanna?

Dolly Khanna is a Chennai-based investor known for her pick of lesser-known midcaps and smallcaps. She has been investing in equities since 1996.

Dolly Khanna’s portfolio, which is managed by her husband Rajiv Khanna, tends to lean towards more conventional stocks in the manufacturing, textile, chemicals and sugar sectors.

Which shares did Dolly Khanna sell and why?

Dolly Khanna sold her stake in Prakash Pipes.

Prakash Pipes specializes in manufacturing PVC pipes and fittings. The company’s product range includes agricultural pipes, column pipes, sanitary pipes, jacket pipes, SWR pipes, garden pipes and related fittings.

According to the December 2025 quarterly update, Dolly Khanna’s name is missing.

This means she may have exited the stock completely or may have a small holding left.

Every quarter, companies must report their shareholder information and the list of shareholders who own more than 1% of the shares.

Dolly Khanna added this stock to her portfolio in the December 2021 quarter.

While we don’t know why she left the stock, there are some reasons we can guess.

#1 Consecutive weak quarter

The company reported consecutive weak performance in the June and September 2025 quarters.

In the June 2025 quarter, sales stood at Rs 2,034 million (mln), almost flat compared to Rs 2,048 million in the same quarter last year.

The slowdown became more visible in the September 2025 quarter, when revenue fell to Rs 1,810 million from Rs 2,002 million a year ago.

The pressure was even more evident on net profit. Net profit for the June 2025 quarter fell sharply to Rs 103 mln, compared to Rs 254 mln in June 2024.

This pressure continued in the September 2025 quarter, with net profit falling to Rs 94 mln, compared to Rs 243 mln in the same period a year ago.

The consecutive decline could be one of the reasons why the top investor might have left the stock.

#2 FII sales

Another major reason behind the exit seems to be the consistent FII selling in the last four quarters. Foreign institutional investors have reduced their stake in the company since the December 2024 quarter.

The FII stake stood at 1.67% in the December 2024 quarter, declining to 1.29% in the March 2025 quarter. The selling trend continued in the June 2025 quarter with FII’s stake falling further to 1.15% before falling sharply to 0.54% in the September 2025 quarter.

What now?

The long-term outlook for the Indian PVC pipe industry remains positive, with the market expected to grow from approximately US$5.25 billion (billion) in 2024 to almost US$7.43 billion by 2030, translating into a CAGR of approximately 5.8%.

This growth is driven by rapid urbanization, increasing construction activity and strong government push for infrastructure development through initiatives such as Housing for All, the Smart Cities missionand other large-scale government spending programs.

At the same time, the Indian flexible packaging industry offers significant scope for growth.

The industry is valued at USD 20.41 billion by 2025 and is expected to grow at a healthy CAGR of 11.46% between 2025 and 2030, supported by rising consumption, changing packaging preferences and increasing focus on convenience and sustainability.

Against this backdrop, the company continues to strengthen its domestic presence through product innovation and expansion of its distribution network.

Furthermore, the country sees meaningful opportunities to scale up exports, especially to markets that increasingly favor environmentally friendly products and sustainable production practices.

How Prakash Pipes shares have performed recently

The stock has fallen more than 15% in the past month. While the stock is down more than 53% in the past year.

The company touched a 52-week high of Rs 483.8 on January 20, 2025 and a 52-week low of Rs 209.2 on January 16, 2026.

About Prakash pipes

Prakash Pipes Limited is a leading manufacturer of high quality PVC pipes, fittings and flexible packaging solutions in India.

It produces a wide range of products including agricultural pipes, column pipes, plumbing pipes, jacket pipes, SWR pipes, garden pipes and related fittings, and more.

The company has also expanded into flexible packaging and has a state-of-the-art manufacturing facility in Kashipur, Uttarakhand.

For more details, see PRAKASH PIPES company information sheet and quarterly results.

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