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Investors Bet on Beaten-Down Stocks: Kedia & Khanna's Moves
27 Oct
Summary
- Vijay Kedia bought 1.49% in Zaggle Prepaid Ocean Services after its stock fell 59%.
- Dolly Khanna re-entered Rajshree Polypack, a packaging firm, with a 1.05% stake.
- Both companies saw sales grow over 20% annually but now trade below industry PEs.
Investor Vijay Kedia has initiated a 1.49% stake in Zaggle Prepaid Ocean Services, a fintech company that has experienced a significant 59% stock depreciation over the past year. This move contrasts with Ashish Kacholia's reduced or exited position in Zaggle during the same September 2026 quarter. Zaggle, which offers prepaid cards and expense management software, faces scrutiny over declining profit margins despite consistent sales growth.
Concurrently, Dolly Khanna has re-entered Rajshree Polypack, a producer of plastic food packaging, by acquiring a 1.05% stake. This packaging firm, trading below its book value, has shown robust annual sales growth exceeding 20% over five years. Both Zaggle and Rajshree Polypack now trade at lower price-to-earnings ratios compared to their industry medians, indicating that investors are evaluating potential market overreactions to recent challenges.
Kedia's investment in Zaggle, valued at Rs 33 crore, is a significant bet on the company's recovery after a challenging June 2026 quarter marked by integration costs and tax issues. Khanna's return to Rajshree Polypack represents a value-oriented strategy, focusing on a profitable manufacturer available at a substantial discount. Investors are advised to monitor these stocks, with future quarterly results expected to clarify the performance of these contrarian investments.
