Little-known firms which have caught the fancy of fund managers

Domestic fund managers are always on lookout for little-known companies with encouraging prospects

Domestic fund managers are always on the lookout for little-known companies with encouraging prospects. At a time inflows into mutual fund schemes are strong, finding such stocks becomes even more imperative. In April, names of several new companies featured in the mutual fund (MF) portfolio. For instance, L&T MF was seen buying shares of realty company Arihant Superstructures. Other companies which saw MF investments include cement company Visaka Industries, speciality chemical company Bodal Chemicals and integrated oil & gas player Deep Industries. HDFC MF was seen buying in textile company Garware Wall Ropes. Auto ancillary companies such as PPAP Automotive and Yuken India, too, were among the new entries in equity fund managers' portfolios. It is worth noting that most of these companies are in the small- and mid-cap space with their market cap ranging between Rs 400 crore and Rs 2,000 crore. Further, what is interesting is the fact that these stocks made to the fund managers' portfolios at a time when they already have rallied anywhere between 86 per cent and 438 per cent. It is to be seen how these stocks fare, after getting attention from fund managers