Dolly Khanna, called the “Queen of Small Caps,” has earned respect as one of India’s top investors with an eye for spotting future multibaggers. Her disciplined approach, backed by solid thorough research with a focus on long-term value, has made her portfolio a gold standard for those chasing steady, profitable returns.
Her investments span a mix of established companies and up-and-coming businesses, showing her sharp eye for untapped potential across diverse industries. Currently she holds 17 stocks in her portfolio worth Rs 580 cr.
And her latest additions to the portfolio are also 2 small cap companies that she sees potential in. Let us try and find out what she sees in these 2 companies.
GHCL Ltd
Incorporated in 1983, GHCL Ltd (formerly Gujarat Heavy Chemicals Limited) is among one of India’s leading manufacturers of Soda Ash (Anhydrous Sodium Carbonate).
With a market cap of Rs 5,987 cr, GHCL is the 2nd largest manufacturer of soda ash in India with a market share of over 26%. It also has an enviable list of clients which includes Hindustan Unilever, P&G, Borosil Renewable, Saint Gobain, Patanjali, Hindustan Zinc, Piramal, etc.
Ace investor Dolly Khanna bought 1% stake in the company worth Rs 61.5 cr as per the exchange filings for the quarter ending March 2025.
The company’s sales have seen quite a few of us and downs in the last 5 years, with the number for FY25 being 8% lower than last year.
Sales (FY20–FY25)
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales (Rs Cr) | 3,305 | 2,491 | 3,052 | 4,551 | 3,447 | 3,183 |
The EBITDA (earnings before interest, taxes, depreciation, and amortization) also has a similar trend, with the FY2 number being higher than last year financial year.
EBITDA Performance (FY20–FY25)
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA (Rs Cr) | 729 | 605 | 730 | 1,503 | 851 | 876 |
Looking at the profits, although the company has not seen any losses in the last 10 years, the last 5 years were nothing less than a roller coaster ride.
Net Profits (FY20–FY25)
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit (Rs Cr) | 397 | 326 | 650 | 1,142 | 794 | 624 |
GHCL Ltd.’s share price has surged 525% from Rs 100 in May 2020 to Rs 625 as of closing on 27th May 2025.
The company’s share is trading at a current PE of 10x, while the industry median is 30x. The 10-year median PE for GHCL is 7x and the industry median for the same period is 25x.
GHCL Ltd is also very efficient with it comes to capital utilisation. The current ROCE (Return on Capital Employed) is 25%, which in simple terms means that the company makes Rs 25 in profit for every Rs 100 it spends as capital. The industry median is 15%.
In the latest investor presentation from May 2025, the company’s Managing Director, Mr. R. S. Jalan said, “Leveraging our strong financial position and proactive market engagement, we are confident in GHCL’s sustained growth and our ability to deliver long-term stakeholder value.”
Polyplex Corporation Ltd
Incorporated in October 1984, Polyplex Corporation Ltd is s a leading global PET film manufacturer with a polyethylene terephthalate (PET) film capacity of 4,78,500 metric tonne (MT) (including upcoming capacities).
With a market cap of Rs 4,308 cr, Polyplex has over 35 years of experience in plastic films. They have 7 manufacturing facilities in 5 countries with multiple warehouses & liaison offices worldwide.
Khanna has bought a 1.2% stake in the company with is worth Rs 50 cr, as per the exchange filings made for March 2025.
Polyplex Corporation’s sales have grown at a 7% CAGR from Rs 4,570 cr in FY19 to Rs 6,307 cr in FY24. Between April and December 2024, the company has recorded sales of Rs 5,146 cr already.
EBITDA for FY24 has dropped to the lowest in 5 years, as the last 5 years saw fluctuations.
EBITDA Performance (FY19–FY24)
| FY | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 |
| EBITDA (Rs Cr) | 732 | 781 | 1,217 | 1,308 | 947 | 366 |
For the three quarters from April to December 2024, the company logged Rs 476 cr in EBITDA, which confirms that for FY25, the operating profits will be higher that FY24 number of 366 Cr.
The net profit also saw big ups and downs in the last 5 years…
Sales (FY19–FY24)
| FY | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 |
| EBITDA (Rs Cr) | 584 | 494 | 862 | 965 | 616 | 86 |
The share price of Polyplex Corporation was around Rs 433 in May 2020, which has jumped to the current price of Rs 1,372 as of closing on 27th May 2025. That is a jump of 216%.
The company’s share is trading at a PE of 2 while the industry median is 25x. The 10-Year median PE for Polyplex is 9x while the industry median for the same period is 17x.
The stock of the company is trading at 1.15 times its book value and it has been maintaining a healthy dividend payout of 55%.
Add to Watchlist?
Small caps have been widely misunderstood by many investors as carriers of huge risk. But there are ace investors like Dolly Khanna who have repeatedly proved that with the right strategy and research, even this category could be helpful in building sone slod wealth over time.
The two stocks we saw today, GHCL Ltd and Polyplex Corporation Ltd, do not have the strongest of financials to garner interest widely in the market. But it is companies like them that investors like Khanna pick when no one is watching them, only to make money when they turn to multibaggers.
Whether these two stocks turn out to be multibaggers or mistakes is something only can tell. But adding them to the watchlist and keeping an eye on them to ensure one does not miss any upswing, is a promising idea for now.
Disclaimer
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.