Down 96%: Why a Star Investor Holds Penny Stocks
When a rock-star investor—nicknamed the “Warren Buffett of India”—keeps a company in his portfolio after its stock drops 96%, investors want to know why. Is there a hidden gem the market ignores, or is it a trap that penalizes new investors?
These questions revolve around two firms still in the portfolio of Ashish Dhawan, founder of ChrysCapital. The first, Dish TV, and the second, Palred Technologies, are both penny stocks, down over 80% from all-time highs. Despite this, Dhawan has not sold his shares. Learn more about Dhawan on The Lucky Ledger.
Ashish Dhawan: The Investor Behind the Moves
Dhawan has a reputation for spotting growth stories early. Through ChrysCapital, he has invested across IT services, healthcare, and more. He also founded the Central Square Foundation, a non-profit enhancing school education in India. His investment style blends value and growth, often focusing on mid- and small-cap companies with high potential returns.
His publicly disclosed portfolio lists 14 stocks valued at over ₹3,351 crore, but two names draw attention for their losses rather than gains.
Dish TV: A Decade in the Red
Dish TV India Ltd, launched in 1988, once dominated India’s DTH entertainment market with DishTV, d2h, and Zing Super brands. Over the last ten years, smart TVs, low-cost broadband, and streaming platforms like Netflix, Disney+ Hotstar, and JioCinema have reduced subscribers, pushing sales and profits downward.
The stock peaked at ₹144 and now trades at ₹5—a 96% decline. From its 52-week high of ₹16, it has fallen nearly 70%. Dhawan has held a 1.6% stake since 2016, worth about ₹14.4 crore. The company has reduced losses from ₹1,655 crore in FY20 to ₹488 crore in FY25 and cut net debt from ₹1,784 crore to ₹35 crore.
The annual report hints at future changes, with Chairman Manoj Dobhal acknowledging threats from streaming giants while outlining innovations and revised plans to retain viewers.
Palred Technologies: A Wager on pTron
Palred Technologies Ltd, founded in 1999, operates in electronics and digital lifestyle, primarily through its pTron brand offering mobile accessories, wearables, and audio devices. Despite initial growth, rising competition and marketing costs have eroded profitability.
The stock fell from ₹352 to ₹53, an 85% drop. In the last year, it declined 63% from ₹143. Dhawan bought shares in 2015 and retains a 5.5% stake, valued at roughly ₹3.6 crore.
Palred’s leadership remains optimistic. In its FY25 report, Chairperson Palem Supriya Reddy outlined plans for cost controls, product revivals, fast-delivery expansion, and improved customer experience.
Penny Stocks: Risk and Reward
Penny stocks often deter average investors due to high volatility, losses, and uncertain outlooks. Dish TV and Palred fit this profile. Yet, Dhawan’s ongoing commitment suggests he sees undervalued opportunities or potential recovery overlooked by the broader market.
For professional investors, such positions offer asymmetric opportunities: minimal downside due to low prices but substantial upside if a rebound occurs.
The Bigger Question
Why does Dhawan retain these stocks? His long-term vision and tolerance for risk differentiate him from most investors. The decision to hold two stocks down over 80% highlights that trendy stocks can falter quickly, while seemingly failing ones may contain hidden value.
Dish TV and Palred Technologies remain penny stocks, but with a seasoned investor like Dhawan supporting them, the market is paying attention.
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