
From Aavas Financiers to Wakefit: Four small-cap stocks recently bought by mutual funds
Subscribe to enjoy similar stories.When mutual funds start accumulating a stock, especially in the small-cap space, it's not by accident.Fund managers spend weeks, sometimes months, doing the kind of due diligence most retail investors simply don't have the time or resources for.So when fresh shareholding data shows a fund quietly building a position in a small-cap name, it's worth paying attention.Here we look at four such small-cap companies.These stocks are filtered using Equitymaster’s stock screener: Smallcap Stocks Recently Bought by Mutual Funds in India.In the most recent March 2026 quarter, mutual funds increased their stake by 7.5%, taking the overall shareholding to 17.24%.This buying comes on top of three consecutive quarters of buying, where mutual funds had increased their holding from 8.44%.Aavas Financiers operates in the affordable financing segment. It offers housing loans and MSME loans backed by property and loans against property (LAP) to segments in the middle and lower income salaried and self-employed borrowers in India's rural and semi-urban regions.Unlike its peers, Aavas uses an in-house sourcing model (98.9% direct) rather than relying on agents.
This ensures deeper customer relationships and better control.Coming to its financials, Aavas Financiers has grown its sales and net profit at a CAGR of 21% and 18% over the past five years.The company's five-year average RoE stands at 13%.Its profitability has remained healthy over the years, and asset quality also remained comfortable. The company has been able to raise funds at competitive rates.Going forward, the company plans to expand its presence in more niche areas, and capture to the needs of rising housing demand.It has continuously expanded
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