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Investors Bet Big on Oil Shock's Hidden Winners
11 Oct
Summary
- Dolly Khanna and Ramesh Damani are investing in specialty chemical firms.
- Both companies reported their strongest financial quarters recently.
- Institutional money has recently been moving out of these stocks.
In the wake of the Strait of Hormuz closure earlier this year, investors Dolly Khanna and Ramesh Damani have strategically invested in Indian companies poised to profit from oil by-product scarcity. Rain Industries, a global carbon materials manufacturer, saw Dolly Khanna increase her stake significantly after a robust financial quarter.
Rain Industries reported a fourfold jump in net profit for the quarter ended June 2026, driven by its carbon and advanced materials businesses. Despite this, domestic and foreign institutions have reduced their holdings, presenting a potential risk.
Meanwhile, Ramesh Damani has increased his investment in Panama Petrochem, a maker of specialty petroleum products. The company experienced a substantial profit increase in the June 2026 quarter due to rising product prices amid disrupted Gulf cargo flows.
Panama Petrochem's exceptional quarter boosted its earnings, making its stock appear cheap on trailing profits. However, analysts caution that margins may normalize as trade routes reopen, indicating an earnings risk for this investment.
Khanna's bet on Rain Industries, a debt-heavy firm, suggests confidence in its cyclical recovery. Damani's investment in Panama Petrochem, a debt-light company, hinges on the sustainability of recent profit gains. Both investors are closely watched as the market awaits future performance indicators.
