These small-cap stocks that MFs love generate significant revenue from exports

Over the last one year, sector and thematic mutual funds caught the investors’ attention and as a result, they received the highest inflows of Rs 1.2 lakh crore among all categories.
Mutual fund companies have begun introducing new schemes such as Business Cycle, Innovation and Manufacturing in an attempt to capitalise on the positive sentiment.

The latest one in the cart is export opportunities. HSBC mutual fund has launched HSBC India Export Opportunities Fund (HEOF) that invests in the companies deriving sizeable income from the exports of goods and services.
With more than 10 years track record, ICICI Prudential Exports and Services Fund (IESF) is the only existing scheme in the industry following the similar investment strategy.
It is likely that other fund houses too launch new schemes with similar investment strategy.

According to HSBC India mutual fund, India has been one of the fastest growing services export country globally and its exports have been consistently scaling up. By 2030 India’s target for export is USD 2 trillon which reflects a strong 15 percent CAGR as against the 10 percent of the Nominal GDP growth rate.
These schemes look for those companies that can benefit from government’s policy, manufacturing export goods and having potential to increase employment, leveraging India’s cost benefit arbitrage in services, assisting in promoting inbound tourism and providing cost effective world class healthcare facilities.
Here are the top small-cap export oriented stocks that active equity mutual fund schemes hold, as per data provided by the ACEMF. Percentage of export revenue to the operating revenue that was more than 80 percent taken into account (consolidated basis). Portfolio data as of August 2024. Financial result data as of June 2024.

Also see: Fortune of this new mutual fund scheme is linked to India’s exports. Should you invest?

Company name: Birlasoft
Percentage of export revenue to the operating revenue: 60
No. of active schemes held: 94
Sector: IT – Software

Company name: Suven Pharmaceuticals
Percentage of export revenue to the operating revenue: 58
No. of active schemes held: 90
Sector: Pharmaceuticals & Biotechnology

Company name: Zensar Technologies
Percentage of export revenue to the operating revenue: 42
No. of active schemes held: 88
Sector: IT – Software

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Company name: Aster DM Healthcare
Percentage of export revenue to the operating revenue: 35
No. of active schemes held: 278
Sector: Health Care Services

Company name: Gokaldas Exports
Percentage of export revenue to the operating revenue: 35
No. of active schemes held: 83
Sector: Textiles & Apparels

Company name: RateGain Travel Technologies
Percentage of export revenue to the operating revenue: 32
No. of active schemes held: 99
Sector: IT – Software

Company name: Granules India
Percentage of export revenue to the operating revenue: 26
No. of active schemes held: 95
Sector: Pharmaceuticals & Biotechnology

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Company name: Orchid Pharma
Percentage of export revenue to the operating revenue: 26
No. of active schemes held: 81
Sector: Pharmaceuticals & Biotechnology

Company name: Swan Energy
Percentage of export revenue to the operating revenue: 25
No. of active schemes held: 85
Sector: Diversified

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Company name: Firstsource Solutions
Percentage of export revenue to the operating revenue: 24
No. of active schemes held: 100
Sector: Commercial Services & Supplies

Company name: eClerx Services
Percentage of export revenue to the operating revenue: 22
No. of active schemes held: 100
Sector: Commercial Services & Supplies

Company name: Azad Engineering
Percentage of export revenue to the operating revenue: 17
No. of active schemes held: 80
Sector: Electrical Equipment

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Company name: Indegene
Percentage of export revenue to the operating revenue: 16
No. of active schemes held: 99
Sector: Healthcare Services

Company name: NIIT Learning Systems
Percentage of export revenue to the operating revenue: 14
No. of active schemes held: 98
Sector: Other Consumer Services

Company name: Latent View Analytics
Percentage of export revenue to the operating revenue: 14
No. of active schemes held: 96
Sector: IT - Software

Company name: Pearl Global Industries
Percentage of export revenue to the operating revenue: 12
No. of active schemes held: 99
Sector: Textiles & Apparels

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