Strong buy’ micro-cap multibagger stocks picked by mutual funds in May

Quality micro-cap stocks have continued their upward journey despite short-term blips. Though the Nifty Microcap 250 Total Return Index (TRI) plummeted 7 percent on June 4, the day of election results, it recovered fast and has outperformed all the other major market capitalisation indices since then. The Nifty Microcap 250 TRI gained 14 percent over the last 10 days while Nifty 50 TRI, Nifty Midcap 150 TRI, Nifty Smallcap 250 TRI rose 7 percent, 10 percent and 12 percent, respectively.

Micro-cap stocks are quite risky but have the potential to deliver high returns. Fund managers apply various parameters to choose micro-cap stocks that have the potential to outperform over the long term. Here are the top micro-cap stocks that were added by actively managed equity-oriented mutual funds (653 schemes) in May 2024 (data as of May 30). Stocks that are ranked below the 500th spot as per the Association of Mutual Funds in India’s market capitalisation list are considered micro-caps. Source: ACEMF.

Awfis Space Solutions
No. of actively managed equity schemes that newly added the stock: 27
Total no. of active schemes holding the stock: 27
AMFI market-cap rank: Newly listed.

AMI Organics
No. of actively managed equity schemes that newly added the stock: 7
Total no. of active schemes holding the stock: 20
AMFI market-cap rank: 658

Also see: Midcap and smallcap funds: How should retail investors approach them?

Savita Oil Technologies
No. of actively managed equity schemes that newly added the stock: 5
Total no. of active schemes holding the stock: 7
AMFI market-cap rank: 883

Bharat Bijlee
No. of actively managed equity schemes that newly added the stock: 5
Total no. of active schemes holding the stock: 23
AMFI market-cap rank: 903

Varroc Engineering
No. of actively managed equity schemes that newly added the stock: 4
Total no. of active schemes holding the stock: 15
AMFI market-cap rank: 527

Also see: Sector, thematic funds: How to choose the best of the lot

Shipping Corporation of India
No. of actively managed equity schemes that newly added the stock: 4
Total no. of active schemes holding the stock: 5
AMFI market-cap rank: 560

Techno Electric & Engineering Company
No. of actively managed equity schemes that newly added the stock: 4
Total no. of active schemes holding the stock: 24
AMFI market-cap rank: 573

Surya Roshni
No. of actively managed equity schemes that newly added the stock: 4
Total no. of active schemes holding the stock: 4
AMFI market-cap rank: 605

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Netweb Technologies India
No. of actively managed equity schemes that newly added the stock: 4
Total no. of active schemes holding the stock: 16
AMFI market-cap rank: 615

Prudent Corporate Advisory Services
No. of actively managed equity schemes that newly added the stock: 4
Total no. of active schemes holding the stock: 30
AMFI market-cap rank: 619

MSTC
No. of actively managed equity schemes that newly added the stock: 4
Total no. of active schemes holding the stock: 4
AMFI market-cap rank: 778

Also see: Why you should keep an eye on liquidity, price deviation and tracking error while investing in ETFs

Nazara Technologies
No. of actively managed equity schemes that newly added the stock: 3
Total no. of active schemes holding the stock: 18
AMFI market-cap rank: 604

La Opala RG
No. of actively managed equity schemes that newly added the stock: 2
Total no. of active schemes holding the stock: 14
AMFI market-cap rank: 634

Sudarshan Chemical Industries
No. of actively managed equity schemes that newly added the stock: 3
Total no. of active schemes holding the stock: 18
AMFI market-cap rank: 743

Manorama Industries
No. of actively managed equity schemes that newly added the stock: 3
Total no. of active schemes holding the stock: 4
AMFI market-cap rank: 875

Also see: Index mutual funds grab investor attention; here’s how to get the best out of them