5 Under-the-Radar Stocks Shared by India's Top Smallcap Funds

While the broader market faces volatility, India's largest smallcap mutual fund managers are showing surprising consensus on a select group of stocks. A deep dive into the portfolios of the country's top three smallcap schemes reveals a concentrated bet on five specific companies.

The Power Trio: Nippon, HDFC, and SBI Small Cap

Data from ACE MF highlights a significant convergence among India’s heavyweight smallcap players. The three largest schemes—Nippon India Small Cap Fund (₹74,600 crore AUM), HDFC Small Cap Fund (₹38,800 crore AUM), and SBI Small Cap Fund (₹37,400 crore AUM)—collectively manage a massive ₹1.51 lakh crore.

These three funds have parked approximately ₹8,000 crore, representing 5.34% of their combined assets, into just five specific stocks. While Nippon India shows a more cautious exposure of 2.49%, SBI Small Cap displays the highest conviction, with nearly 10% of its entire portfolio riding on these five names.

Breaking Down the Five Common Bets

The shared conviction is centered on five companies that span different sectors, providing a diversified approach to smallcap investing.

  1. Krishna Institute of Medical Sciences (KIMS): This is the largest common bet by value. The three funds collectively hold ₹2,170 crore in KIMS. SBI Small Cap leads the charge with a 2.50% stake (₹935 crore).
  2. Kalpataru Projects International: Ranking second, the combined holding in Kalpataru stands at ₹2,100 crore. SBI Small Cap shows its strongest conviction here, allocating 2.76% of its corpus (₹1,030 crore) to the stock.
  3. City Union Bank: The funds have a combined exposure of ₹1,777 crore in this banking entity.
  4. PVR Inox: This entertainment major sees a combined investment of approximately ₹1,000 crore.
  5. Carborundum Universal: Rounding off the list, the three funds hold roughly ₹990 crore in this company.

Market Sentiment: Resilience Amidst Correction

The move toward these stocks comes as fund managers become more constructive following recent market corrections. Recent earnings data suggests that mid-caps delivered a robust 36% YoY profit growth, outperforming both small-caps (23%) and large-caps (10%).

Monarch Networth Capitalのような証券会社は強気な姿勢を維持しており、過去18ヶ月間にわたるSMID（小型・中型株）セクターにおける「時間およびバリュエーションの調整」によって、ボトムアップ方式の銘柄選定が非常に魅力的になっていると示唆しています。これはNifty Smallcap 100のパフォーマンスに反映されており、Nifty 50が8%以上の下落を見せる一方で、CY26において4.3%の上昇を記録しています。

バリュエーションに関する注意点

楽観的な見方がある一方で、一部のアナリストは注意を促しています。JM Financialは、大型株が過去の平均に近い水準で取引されているのに対し、中型株や小型株はより高いマルチプルで取引されていると指摘しています。FY27予想PERに基づくと、Nifty Midcap 100は26.8倍、Nifty Smallcap 100は24.5倍となっており、Nifty 50（18.8倍）が最も割安なセグメントとなっています。

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