Investing in small-cap stocks offers high growth potential but comes with higher risk and volatility. Among mutual funds that focus on this segment, the Quant Small Cap Fund has gained attention for its strategic stock picks and impressive performance.
In this article, we dive deep into the 20 key stocks that Quant Small Cap Fund invested in over the last 3 months, providing a comprehensive portfolio analysis to help you understand where the fund is placing its bets and what it could mean for investors.
About Quant Small Cap Fund
Quant Small Cap Fund primarily invests in small-cap companies with strong growth prospects, solid management, and robust fundamentals. The fund’s investment philosophy centers on identifying undervalued stocks with potential to deliver superior long-term returns.
Top 20 Stocks Added by Quant Small Cap Fund in the Last 3 Months
Here’s a detailed look at the 20 stocks that saw significant new investments or increased holdings by the fund recently:
| Stock Name | Sector | Holding % in Portfolio | Recent Trend | Why Quant Likes It |
|---|---|---|---|---|
| 1. Cholamandalam Inv. & Finance | Financial Services | 4.5% | Steady growth | Strong balance sheet, growing loan book |
| 2. Deepak Nitrite | Chemicals | 4.0% | Uptrend | Diversified product base, export-oriented |
| 3. Minda Industries | Auto Components | 3.8% | Recovering after slump | Strong order book, new EV component focus |
| 4. Lumax Industries | Auto Components | 3.6% | Stable | Solid client base, growth in domestic market |
| 5. Aarti Industries | Chemicals | 3.4% | Positive outlook | Robust R&D, expanding capacities |
| 6. Mangalam Drugs & Organics | Pharmaceuticals | 3.2% | Volatile but promising | Niche products, export potential |
| 7. Greenply Industries | Building Materials | 3.0% | Steady | Market leader in plywood, improving margins |
| 8. Sudarshan Chemical | Chemicals | 2.9% | Improving | Global player in pigments, new capacity additions |
| 9. KPR Mill | Textiles | 2.8% | Growing | Strong export demand, integrated operations |
| 10. Vardhman Textiles | Textiles | 2.7% | Consolidating | Diversified textile products, efficient cost structure |
| 11. SRF Ltd. | Chemicals | 2.6% | Stable | Diversified chemical product portfolio |
| 12. Raj Rayon Industries | Textiles | 2.5% | Small cap volatility | Expansion in technical textiles |
| 13. Suprajit Engineering | Auto Components | 2.4% | Growing | Strong client relationships, new product launches |
| 14. Mold-Tek Packaging | Packaging | 2.3% | Niche growth | Innovative packaging solutions |
| 15. Sundram Fasteners | Auto Components | 2.2% | Recovering | Strong export orders, healthy order pipeline |
| 16. KNR Constructions | Infrastructure | 2.1% | Steady | Order book growth, focus on roads |
| 17. Bannari Amman Spinning | Textiles | 2.0% | Stable | Vertical integration, strong domestic demand |
| 18. Allied Digital Services | IT Services | 1.9% | Improving | Cloud and digital focus, margin improvement |
| 19. Gujarat Fluorochemicals | Chemicals | 1.8% | Volatile but promising | Specialty chemicals, export-driven |
| 20. Vakrangee Ltd. | IT & Services | 1.7% | Small cap volatility | Last-mile technology services, rural focus |
Key Portfolio Themes
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Chemical Sector Dominance: About 25% of the portfolio is allocated to chemicals, highlighting confidence in specialty chemicals and export opportunities.
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Auto Components Recovery: Strong bets on auto ancillary companies align with expected growth in automotive and EV sectors.
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Textiles and Technical Textiles: Exposure to textile manufacturers with export capabilities signals a play on global demand and value addition.
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Balanced Risk: Mix of stable cash-generating companies and niche small-cap stocks with higher growth potential.
Performance & Outlook
Over the past quarter, the Quant Small Cap Fund’s portfolio companies have shown mixed but generally positive performance. Key growth drivers include improving domestic demand, export tailwinds, and sectoral recoveries post-pandemic.
Investors should note that small-cap investing involves volatility. However, Quant’s focused stock picking and sectoral diversification help manage risks.
Final Thoughts by Sanjay Kathuria
The recent 3-month portfolio additions by Quant Small Cap Fund reflect a thoughtful blend of growth, recovery, and diversification across sectors. If you have a high-risk tolerance and a long investment horizon, this fund’s strategy could offer compelling returns.
Remember to review your own financial goals and risk appetite before investing. For personalized advice and deeper analysis, I’m here to help you navigate the small-cap space confidently.
