On July 16, 2025, Coffee Day Enterprises shares surged 10%, hitting the upper circuit for the second consecutive day at ₹39.86 per share on the BSE, while 20 Microns shares rallied 8%, trading at ₹243 per share. The sharp gains in both stocks were triggered by the disclosure that veteran investor Dolly Khanna acquired significant stakes in these companies during the April-June 2025 quarter, fueling investor optimism.
Dolly Khanna’s Strategic Investments
Dolly Khanna, a Chennai-based investor renowned for her knack for identifying high-potential small and mid-cap stocks, has once again captured market attention. According to BSE shareholding data, Khanna now holds 32.78 lakh shares in Coffee Day Enterprises, representing a 1.55% stake in the parent company of the popular Café Coffee Day chain. Similarly, she acquired 7.03 lakh shares in 20 Microns, equating to a 1.99% stake in the industrial minerals producer. Her name was absent from the shareholding patterns of both companies in the previous quarter (January-March 2025), suggesting either a fresh investment or an increase from a prior holding below the 1% disclosure threshold.
Khanna’s portfolio, managed by her husband Rajiv Khanna, is closely watched by retail investors for its history of picking multi-bagger stocks that deliver substantial returns. Her latest bets on Coffee Day and 20 Microns have sparked renewed interest in these small-cap stocks, driving significant trading volumes and price momentum.
Coffee Day Enterprises: A Turnaround Story?
Coffee Day Enterprises, the parent company of Café Coffee Day, has seen its stock rally 67% year-to-date in 2025, despite a 24% decline over the past year. The stock hit a 52-week high of ₹54.43 in July 2024 and a 52-week low of ₹21.38 in February 2025. The company reported a narrowed consolidated net loss of ₹114.16 crore in Q4 FY25 (January-March 2025), compared to ₹296.40 crore in the same period the previous year, with revenue from operations rising 7% to ₹268.03 crore. For the full fiscal year ended March 31, 2025, Coffee Day reduced its net loss to ₹143.20 crore from ₹307.43 crore, with total income marginally up at ₹1,125.64 crore. The company’s efforts to settle debts, including a ₹205 crore agreement with debenture holders, have further bolstered investor confidence.
The 10% upper circuit on July 16, with nearly 30 lakh shares traded (three times the 10-day average volume), reflects strong market enthusiasm following Khanna’s stake acquisition. The stock’s near-term resistance is at ₹40, with support at ₹32, making it a key level to watch for potential breakouts.
20 Microns: Riding the Industrial Minerals Wave
20 Microns, a leading producer of ultrafine industrial minerals like calcium carbonate, talc, and kaolin, saw its shares climb 8% on July 16, driven by Khanna’s 1.99% stake purchase. The company’s stock has gained 58% in 2024, with a 99% rally over the past year, reflecting strong financial performance. In FY24, 20 Microns reduced its debt by 25%, launched over 10 new products, and secured supply agreements in markets like Eastern Europe, Russia, and Southeast Asia. The company’s focus on operational efficiency and value-added products positions it to benefit from the China-plus-one strategy, enhancing its global competitiveness.
With a 52-week high of ₹347 in August 2024 and a 52-week low of ₹130 in October 2023, 20 Microns remains a compelling pick in the small-cap space, supported by consistent sales and profit growth over recent quarters.
Why Dolly Khanna’s Moves Matter
Dolly Khanna’s investments are often seen as a vote of confidence in undervalued or turnaround stories. Her portfolio, valued at over ₹458.8 crore as per Trendlyne data, includes 16 publicly disclosed stocks, with notable holdings in Zuari Industries (1.7%), GHCL (1.1%), and Polyplex Corporation (1.1%). Her strategy focuses on companies with strong fundamentals and growth potential, often in overlooked sectors. The market’s reaction to her stake purchases in Coffee Day and 20 Microns underscores her influence, with retail investors closely tracking her moves for investment cues.
Market Outlook
The sharp rallies in Coffee Day Enterprises and 20 Microns highlight the power of high-profile investor endorsements in driving small-cap stock momentum. For Coffee Day, improving financials and debt resolution efforts suggest a potential turnaround, while 20 Microns’ strategic expansions and debt reduction make it a strong contender in the industrial minerals sector. Investors should remain cautious of volatility, given the small-cap nature of these stocks, and monitor key technical levels for sustained momentum.
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