In today’s article, we take a look at an agriculture stock recently sold by Dolly Khanna.

Before going into details, let us first talk about Dolly Khanna.

Who is Dolly Khanna?

Dolly Khanna is a Chennai-based investor, who is known for picking lesser-known midcaps and smallcaps. She has been investing in stocks since 1996.

Dolly Khanna’s portfolio, which is managed by her husband Rajiv Khanna, is usually inclined towards more conventional stocks in manufacturing, textile, chemical, and sugar stocks.

Which agriculture stock did Dolly Khanna sell and why?

The latest shareholding pattern of Aries Agro shows that Dolly Khanna offloaded her stake in the agriculture company during September-December 2022 quarter.

As of September 2022, her stake in the company stood at 1.1%. In the quarter that ended December 2022, her name does not appear in the list of shareholders holding more than 1% stake.

This implies she has sold all of her stake from Aries Agro or a partial stake. Shareholders who hold above 1% stake in a company are made to file their statements.

Khanna was holding stake in Aries Agro since June 2021.

After a long period of holding the stock, what changed her mind?

While we don’t know why Khanna sold shares of Aries Agro, there are some reasons that we can guess…

One reason could be profit booking.

If you see the share price of Aries Agro in the past one month, you’ll notice that the stock has seen a huge spike in little time.

During the October to December 2022 quarter, the share price rose by around 60%.

In the past few months, the government has announced a hike in the subsidy on fertilizers to reduce the burden on farmers. The announcements were made in light of an increase in fertilizer input prices. Most fertilizer companies have had to raise prices owing to increased input costs.

That is why the top fertilizer stocks in India saw a sharp spike in recent months.

It’s usual for an investor to book profit after the stock has seen a sharp and unexpected rise.

How shares of Aries Agro have performed recently

Over the last one month, the share price of Aries Agro has gained 43%.

On a YoY basis, the stock has gained 29%.

The company touched its52-week highof ₹242.7 on 29 December 2022 and its 52-week low of ₹105.5 on 05 July 2022.

About Aries Agro

Aries Agro was originally incorporated as Aries Agro-Vet Industries on 27th November 1969.

The company is in the business of manufacturing micronutrients and other customized nutritional products for plants and animals.

The company started their activity by manufacturing a small range of mineral feed additives for animals & birds and then diversified into mineral additives for agriculture use.

Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com