These 15 smallcaps are hot favourites of mutual fund managers
As per the latest shareholding pattern data, mutual funds hold a significant portion in the total shares of these smallcap companies. This indicates fund managers’ optimism over the future growth prospects of these companies.
Shareholding pattern refers to a company’s capital structure disclosing how the total number of outstanding equity shares is divided among various owners such as promotors, individuals and institutions. All listed Indian companies are mandated to disclose their shareholding pattern to concerned stock exchanges. It includes how many shares the mutual fund industry too holds. A high investment by mutual funds is a positive sign as it shows that they trust the company to generate attractive returns. Deepak Jasani, Head Retail Research of HDFC securities says, “It shows that mutual fund companies are bullish about the prospects of the company in the medium term. Fund managers are mindful of liquidity while raising stakes in these companies”. The presence of large informed shareholders with major holdings implies reduced liquidity. Shyam Sekhar, founder and chief ideator of iThought is of the view that mutual funds along with FII control close to 90 percent of public float in many small and midcap stocks. This turns several stocks into just technically listed, sporadically traded stocks. The launch of ETFs across categories further aggravates the situation of manufacturing price volatility when flows spike up. ETFs are forced to buy illiquid stocks at any price. Here are the top 15 smallcap stocks wherein the mutual fund industry holds upto 37 percent of the total equity capital of the companies. Data source: ACEMF. Shareholding data are as of either June 2023 or March 2023.
2/16
Gateway Distriparks Percentage of MF holding in the Equity capital of the company as of June 2023: 37.5% Total no. of shares held by mutual funds: 18.71 crore Total no. of mutual fund schemes holding the stock: 30
3/16
Equitas Small Finance Bank Percentage of MF holding in the Equity capital of the company as of June 2023: 37.1% Total no. of shares held by mutual funds: 41.25 crore Total no. of mutual fund schemes holding the stock: 76
4/16
Kalpataru Projects International Percentage of MF holding in the Equity capital of the company as of March 2023: 36.1% Total no. of shares held by mutual funds: 5.87 crore Total no. of mutual fund schemes holding the stock: 66
Multi Commodity Exchange Of India Percentage of MF holding in the Equity capital of the company as of March 2023: 34% Total no. of shares held by mutual funds: 1.73 crore Total no. of mutual fund schemes holding the stock: 83
6/16
KNR Constructions Percentage of MF holding in the Equity capital of the company as of June 2023: 33% Total no. of shares held by mutual funds: 9.28 crore Total no. of mutual fund schemes holding the stock: 66
Greenply Industries Percentage of MF holding in the Equity capital of the company as of June 2023: 32.2% Total no. of shares held by mutual funds: 3.97 crore Total no. of mutual fund schemes holding the stock: 22
8/16
Rolex Rings Percentage of MF holding in the Equity capital of the company as of June 2023: 31.3% Total no. of shares held by mutual funds: 0.85 crore Total no. of mutual fund schemes holding the stock: 37
V-Mart Retail Percentage of MF holding in the Equity capital of the company as of June 2023: 28.6% Total no. of shares held by mutual funds: 0.57 crore Total no. of mutual fund schemes holding the stock: 41
10/16
PVR Inox Percentage of MF holding in the Equity capital of the company as of June 2023: 28.3% Total no. of shares held by mutual funds: 2.77 crore Total no. of mutual fund schemes holding the stock: 95
City Union Bank Percentage of MF holding in the Equity capital of the company as of June 2023: 27.7% Total no. of shares held by mutual funds: 20.54 crore Total no. of mutual fund schemes holding the stock: 65
12/16
DCB Bank Percentage of MF holding in the Equity capital of the company as of June 2023: 27.5% Total no. of shares held by mutual funds: 8.57 crore Total no. of mutual fund schemes holding the stock: 30
Krishna Institute of Medical Sciences Percentage of MF holding in the Equity capital of the company as of June 2023: 27.4% Total no. of shares held by mutual funds: 2.19 crore Total no. of mutual fund schemes holding the stock: 52
14/16
PNC Infratech Percentage of MF holding in the Equity capital of the company as of June 2023: 27.2% Total no. of shares held by mutual funds: 6.97 crore Total no. of mutual fund schemes holding the stock: 62
Orient Electric Percentage of MF holding in the Equity capital of the company as of June 2023: 26.9% Total no. of shares held by mutual funds: 5.74 crore Total no. of mutual fund schemes holding the stock: 38
16/16
Ahluwalia Contracts (India) Percentage of MF holding in the Equity capital of the company as of June 2023: 26.4% Total no. of shares held by mutual funds: 1.77 crore Total no. of mutual fund schemes holding the stock: 16
