Coffee Day Enterprises shares jump 10% after Dolly Khanna's name appears in shareholding pattern

Coffee Day Enterprises stock jumped 10% after ace investor Dolly Khanna acquired a 1.07% stake. Analysts see potential in the turnaround story amid improved financials.

Jul 15, 2025 - 20:25
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Coffee Day Enterprises shares jump 10% after Dolly Khanna's name appears in shareholding pattern
Coffee Day Enterprises stock jumped 10% after ace investor Dolly Khanna acquired a 1.07% stake. Analysts see potential in the turnaround story amid improved financials.

Bengaluru, July 15, 2025 — Shares of Coffee Day Enterprises Ltd (CDEL) rallied nearly 10% on Tuesday, hitting their upper circuit limit on the BSE, after the company’s latest shareholding pattern revealed that seasoned investor Dolly Khanna has picked up a stake in the company. This triggered renewed investor optimism in the stock, which has been struggling with debt and corporate governance issues in the past.


Dolly Khanna Adds CDEL to Her Portfolio

According to the June quarter shareholding disclosures filed with the exchanges, Dolly Khanna holds 2.03 million equity shares, equivalent to a 1.07% stake in Coffee Day Enterprises. The Chennai-based investor is known for identifying undervalued mid- and small-cap stocks with strong turnaround potential.

Market watchers closely follow her portfolio moves, and her entry into a stock often triggers interest among retail investors and funds alike.

“Dolly Khanna’s entry signals confidence in the company’s restructuring progress and turnaround potential,” said Ajay Bagga, market expert and former executive at Deutsche Bank. “It’s a classic value-hunting approach, and such moves often precede sustained accumulation by institutions.”


Market Reaction and Volumes

Following the disclosure, CDEL shares surged 9.93% to ₹60.68 on the BSE. Volumes soared as over 2.7 million shares changed hands — significantly higher than the 30-day average.

The rally comes at a time when the broader markets are facing consolidation pressure, making the stock’s movement even more significant. The Nifty Midcap 100 was up just 0.4% in comparison.


Background: From Crisis to Cautious Optimism

Coffee Day Enterprises — once the parent of India’s largest café chain, Café Coffee Day (CCD) — faced a crisis after the tragic death of founder V.G. Siddhartha in July 2019. This exposed a massive debt burden and raised questions around financial transparency.

Since then, the company has been in recovery mode, selling assets and repaying debt. Notably, CDEL has:

  • Sold its tech park (Tanglin Developments) to Blackstone.

  • Reduced its debt significantly from over ₹7,000 crore in 2019 to under ₹1,000 crore by FY24.

  • Continued operations of its Café Coffee Day retail business under a leaner structure.

“The company has been quietly improving its fundamentals and has reached an inflection point,” said Ravi Shenoy, Head of Equity Research at Valuewise Capital. “It’s no longer a broken story — but a restructuring play.”


Investor Sentiment and Analyst Takeaways

Dolly Khanna’s entry is seen as a strong sentiment booster. Her past picks — like Rain Industries, Butterfly Gandhimathi, and NOCIL — have delivered multibagger returns over the years. Her investment strategy combines deep value with fundamental turnaround cues.

Analysts point out that CDEL’s stock had been under-owned and largely ignored after the crisis, despite steady operational improvements.

“CDEL is now a cleaner company with a focused core business and minimal distractions,” noted Siddharth Bera, analyst at Nomura India. “The next leg of growth depends on CCD’s ability to revive footfalls, brand loyalty, and franchise expansion.”


Café Coffee Day: Brand Still Has Equity

Despite years of turmoil, the CCD brand remains widely recognized across India, particularly in Tier 2 and Tier 3 cities. The company operates over 400 outlets, down from 1,700 at its peak, but has been stabilizing with a positive EBITDA margin for the café business in recent quarters.

Some analysts believe the brand could see renewed traction if leveraged properly in the premium café segment — especially as urban India’s demand for casual coffee experiences continues to grow.


Investor Outlook: Risk, Reward, and a Long Road Ahead

While the recent rally signals renewed investor interest, analysts caution that risks remain:

  • The company is still recovering from a legacy of financial mismanagement.

  • It faces intense competition from newer players like Third Wave Coffee, Blue Tokai, and even Starbucks.

  • Corporate governance will remain under close investor scrutiny.

That said, the potential upside is drawing investors with a higher risk appetite.

“This is a turnaround play — not a growth rocket yet,” emphasized Deepak Shenoy, founder of Capitalmind. “Investors must be patient and monitor quarterly results, outlet expansion, and promoter disclosures closely.”


Dolly Khanna’s entry into Coffee Day Enterprises has sparked optimism in a long-neglected stock, and for good reason. While challenges remain, the company’s debt reduction, operational stability, and brand resilience offer the ingredients for a successful revival. For now, the street is watching — and accumulating.

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