MFs bet on these micro-cap stocks despite market correction. Do you own any?
A high-risk, high-return strategy, microcap stocks are those whose market-capitalisation falls below Rs 3,000 crore. If picked with care and backed by good research, these stocks can give a big kicker in returns. And market correction presents a good opportunity to do quality picking.
Indian equity markets have been volatile over the last six months due to a host of global and domestic factors. Small-sized companies were hit badly, especially in the last one month. While Nifty 50 TRI and Nifty Midcap 150 TRI fell nine percent and 12 percent over the last one month, respectively, Nifty Smallcap 250 TRI and Nifty Microcap 250 TRI declined 19 percent and 14 percent, respectively. Quality microcaps with strong prospects have corrected significantly recently and are available at attractive valuations, experts say. Here are the top 10 microcap stocks added newly by mutual funds over the last two months. Stocks with less than Rs 3,000 crore are considered microcaps. Data as on April 30, 2022. Source: ACEMF.
2/11
Number of schemes that newly added the stock “Honda India Power Products”: 4 | Total number of schemes that held the stock: 6. Shares of Honda India Power Products were newly added by the schemes in their portfolio over the last two months include LIC MF Infra, LIC MF Children's Gift, LIC MF Tax amd Quant Value Fund.
3/11
Number of schemes that newly added the stock “Kirloskar Oil Engines”: 4 | Total number of schemes that held the stock: 11. Shares of Industrial Products company were added afresh by the four Franklin India AMC schemes such as Franklin India Equity Hybrid, Franklin India Pension, Franklin India Equity Savings and Franklin India Debt Hybrid Fund.
4/11
Number of schemes that newly added the stock “Lyka Labs”: 3 | Total number of schemes that held the stock: 4. Top performing schemes from Quant AMC such as Quant Small Cap, Quant Multi Asset and Quant Active Fund added the shares of Pharmaceuticals company afresh in the last two months.
5/11
Number of schemes that newly added the stock “Goodyear India”: 4 | Total number of schemes that held the stock: 6. Stock of Auto Ancillaries company was newly added by the HDFC schemes such as HDFC Retirement Savings Fund-Hybrid-Equity, HDFC Equity Savings, HDFC Retirement Savings Fund-Hybrid-Debt and HDFC Hybrid Debt Fund in the last two months.
6/11
Number of schemes that newly added the stock “Gulshan Polyols”: 3 | Total number of schemes that held the stock: 3. Schemes such as Quant Small Cap, Aditya Birla SL Pure Value and Aditya Birla SL Small Cap Fund newly bought the shares of Gulshan Polyols in the last two months.
7/11
Number of schemes that newly added the stock “JMC Projects (India)”: 3 | Total number of schemes that held the stock: 17. Shares of JMC Projects (India) were newly added by the schemes such as ICICI Pru Retirement Fund-Pure Equity, ICICI Pru Retirement Fund-Hybrid Aggressive and ICICI Pru Child Care Fund-Gift Plan.
8/11
Number of schemes that newly added the stock “Taj GVK Hotels & Resorts”: 2 | Total number of schemes that held the stock: 4. Quant Small Cap and ITI Multi-Cap Fund bought the shares of the hotel in the last two months.
9/11
Number of schemes that newly added the stock “Apex Frozen Foods”: 2 | Total number of schemes that held the stock: 4. ITI Small Cap and ITI Long Term Equity Fund bought newly the stock in the last two months.
10/11
Number of schemes that newly added the stock “IG Petrochemicals”: 2 | Total number of schemes that held the stock: 4. Shares of IG Petrochemicals were newly added by Taurus Tax Shield and Taurus Flexi Cap Fund.
11/11
Number of schemes that newly added the stock “Voltamp Transformers”: 2 | Total number of schemes that held the stock: 11. HDFC Small Cap and ICICI Pru Infrastructure added the stock afresh in the last two months.
