Beyond the hype: 5 under-the-radar stocks common across India's 3 largest smallcap portfolios

India's three largest smallcap mutual funds — Nippon India Small Cap, HDFC Small Cap, and SBI Small Cap — together managing Rs 1.51 lakh crore, have a combined exposure of about Rs 8,000 crore (5.34% of pooled assets) in five common stocks: Kalpataru Projects International, KIMS, City Union Bank, PVR Inox, and Carborundum Universal. SBI Small Cap shows the highest conviction, with nearly a tenth of its portfolio in these names, while KIMS (Rs 2,170 crore combined) and Kalpataru Projects (Rs 2,100 crore) are the top two holdings by value. The convergence comes as fund managers turn more constructive on the smallcap space following recent corrections and broad-based earnings growth, with midcaps delivering 36% YoY profit growth and smallcaps 23%.