Microcaps that are fund house favourites but yet to unlock their potential
Many microcap stocks held by mutual funds have not yet performed well. Fund managers continue holding these stocks in their portfolio believing that these businesses may play out well in the future
Micro-cap stocks had a solid run over the last 3 years and outperformed other segments by a huge margin. The Nifty Microcap 250 TRI registered a spectacular show by gaining 574% from its March 2020 lows. Meanwhile, Nifty 50 TRI, Nifty Midcap 150 – TRI and Nifty Smallcap 250 - TRI gained 176%, 275% and 321% respectively during the same period. Typically, micro-cap stocks can turn multi-baggers. However, things do not go always according to plan. Many such cherry picked stocks may not perform as expected and take longer to produce better results. Fund managers continue holding these stocks in their portfolio believing that these businesses may play out well in the future. Here are the microcap stocks held by active mutual funds that have delivered almost no return over the last one year. Stocks with Market Cap of less than Rs 3,000 crore are considered microcaps. Data as on August 31, 2023. Source: ACEMF.
2/18
CarTrade Tech No. of schemes hold the stock: 5 Sample of schemes that hold the stock over a year: Aditya Birla SL Balanced Advantage, HDFC Large and Mid Cap and ICICI Pru Technology
3/18
Thyrocare Technologies No. of schemes hold the stock: 7 Sample of schemes that hold the stock over a year: Nippon India Pharma, Nippon India Retirement Fund-Wealth Creation and Nippon India Small Cap
Greenply Industries No. of schemes hold the stock: 20 Sample of schemes that hold the stock over a year: Bandhan Emerging Businesses, Canara Rob Small Cap and HDFC Mid-Cap Opportunities
Oriental Carbon & Chemicals No. of schemes hold the stock: 6 Sample of schemes that hold the stock over a year: HDFC Large and Mid Cap, HDFC Small Cap and HSBC Small Cap
Matrimony.Com No. of schemes hold the stock: 6 Sample of schemes that hold the stock over a year: ICICI Pru ESG ICICI Pru Smallcap, Tata Digital India and Tata Retirement Sav Fund - Cons Plan
7/18
Mahindra Logistics No. of schemes hold the stock: 13 Sample of schemes that hold the stock over a year: Aditya Birla SL Small Cap, Edelweiss Small Cap and Nippon India Small Cap
Mayur Uniquoters No. of schemes hold the stock: 12 Sample of schemes that hold the stock over a year: Bandhan Emerging Businesses, ICICI Pru Dividend Yield Equity and ITI Small Cap
Astec Lifesciences No. of schemes hold the stock: 8 Sample of schemes that hold the stock over a year: ICICI Pru Smallcap, ITI Value and Nippon India Small Cap
11/18
Sagar Cements No. of schemes hold the stock: 7 Sample of schemes that hold the stock over a year: Bandhan Emerging Businesses, Bandhan Infrastructure and HDFC Multi Cap
Indoco Remedies No. of schemes hold the stock: 16 Sample of schemes that hold the stock over a year: Franklin India Smaller Cos and ICICI Pru Smallcap and Nippon India Small Cap
13/18
Tamil Nadu Newsprint & Papers No. of schemes hold the stock: 6 Sample of schemes that hold the stock over a year: Aditya Birla SL Dividend Yield, Aditya Birla SL Pure Value and HDFC Hybrid Equity
Butterfly Gandhimathi Appliances No. of schemes hold the stock: 9 Sample of schemes that hold the stock over a year: Aditya Birla SL Small Cap, ICICI Pru Multicap and Sundaram Small Cap
15/18
Prataap Snacks No. of schemes hold the stock: 7 Sample of schemes that hold the stock over a year: Aditya Birla SL Mfg. Equity, Bandhan Focused Equity and Kotak Small Cap
Wheels India No. of schemes hold the stock: 6 Sample of schemes that hold the stock over a year: Bandhan Emerging Businesses, HDFC Multi Cap and Nippon India Tax Saver (ELSS)
17/18
MM Forgings No. of schemes hold the stock: 13 Sample of schemes that hold the stock over a year: Franklin India Smaller Cos, HSBC Small Cap and Tata Small Cap
18/18
Subros No. of schemes hold the stock: 9 Sample of schemes that hold the stock over a year: Canara Rob Small Cap, DSP Small Cap, Nippon India Small Cap and UTI Small Cap
