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%).

像 Monarch Networth Capital 这样的券商依然持乐观态度，认为过去 18 个月中小盘股（SMID）领域的“时间与价值回调”使得自下而上的选股极具吸引力。这体现在 Nifty Smallcap 100 指数的表现上：尽管 Nifty 50 指数下跌超过 8%，但 Nifty Smallcap 100 在 2026 日历年（CY26）仍增长了 4.3%。

关于估值的警示

尽管情绪乐观，但一些分析师敦促保持谨慎。JM Financial 指出，虽然大盘股的交易价格接近其历史平均水平，但中盘股和小盘股的交易倍数更高。基于 FY27（2027 财年）的预估市盈率（P/E），Nifty Midcap 100 为 26.8 倍，其次是 Nifty Smallcap 100 的 24.5 倍，这使得 Nifty 50（18.8 倍）成为估值最具吸引力的板块。

核心观点