Undervalued Stocks in the Quant Small Cap Fund: A Closer Look

The Quant Small Cap Fund Direct Plan-Growth is designed to generate capital appreciation by investing in a diversified portfolio of small-cap companies. Launched on January 1, 2013, the fund is managed by Quant Mutual Fund and benchmarks against the NIFTY Smallcap 250 Total Return Index. As of December 16, 2025, the fund’s Net Asset Value (NAV) stands at Rs. 276.07. The Direct Plan of the fund attracts an exit load of 1% if redeemed within one year, and the expense ratio for the Direct Plan is 0.75% as of December 12, 2025. The minimum investment required is Rs. 5,000, with a minimum additional investment of Rs. 1,000. For Systematic Investment Plans (SIP), the minimum investment is Rs. 1,000.

The asset allocation of the portfolio is heavily skewed towards equity, with 95.66% allocated to equity, 0.61% to debt, and 3.73% to other assets. This allocation highlights a high-risk, high-reward investment approach. The sector allocation of the fund is diverse, with the largest share in “Others” at 30.08%, followed by Financials at 19.11%, and Energy at 14.76%. Smaller portions are allocated to Healthcare (13.85%), Services (13.72%), and Construction (8.48%). This allocation suggests a diversified investment approach, with significant exposure to financial and energy sectors.

In this article, we will explore a list of undervalued stocks held by the Quant Small Cap Fund, based on their P/E ratios compared to their industry peers.

Sanofi India Ltd

Sanofi India Ltd is a major multinational pharma player in India, part of the global Sanofi group. The company focuses on innovative medicines for diabetes, cardiology, CNS, rare diseases, and vaccines, with strong brands like Toujeo, Valparin, and Allegra. Quant Small Cap Fund holds 0.09% of its Assets Under Management (AUM) in the stock, which has a P/E ratio of 26.0 compared to its industry P/E ratio of 30.6, indicating that it is undervalued compared to its peers.

Himadri Speciality Chemical Ltd

Himadri Speciality Chemical Ltd (HSCL) is a leading Indian global specialty chemical conglomerate. The company is a pioneer in coal tar pitch (CTP) and a major player in carbon black, naphthalene, speciality oils, and new energy materials, with a strong focus on R&D and sustainability. Quant Small Cap Fund holds 0.10% of its AUM in the stock, which has a P/E ratio of 36.1 compared to its industry P/E ratio of 36.2, indicating that it is undervalued compared to its peers.

Indian Hume Pipe Company Ltd

The Indian Hume Pipe Company Ltd (IHP), founded in 1926 by Walchand Hirachand, is a pioneer in India’s infrastructure. The company specializes in manufacturing concrete and steel pipes and executing large-scale turnkey water supply and sewerage projects, contributing significantly to national water management. Quant Small Cap Fund holds 0.10% of its AUM in the stock, which has a P/E ratio of 19.9 compared to its industry P/E ratio of 33.2, indicating that it is undervalued compared to its peers.

Vardhman Textiles Ltd

Vardhman Textiles Ltd. is India’s largest vertically integrated textile manufacturer, producing a vast range of yarns (cotton, synthetic, specialty), woven fabrics, sewing threads, and acrylic fiber. The company serves global markets in the USA, Europe, and Asia. Quant Small Cap Fund holds 0.13% of its AUM in the stock, which has a P/E ratio of 15.4 compared to its industry P/E ratio of 18.8, indicating that it is undervalued compared to its peers.

Sai Silks (Kalamandir) Ltd

Sai Silks (Kalamandir) Ltd (SSKL) is a major South Indian ethnic apparel retailer, known for sarees. Launched in Hyderabad in 2005, the company focuses on traditional Indian wear for women, men, and kids across premium to value segments with brands like Kalamandir, Mandir, Kancheepuram Varamahalakshmi Silks, and KLM Fashion Mall. Quant Small Cap Fund holds 0.11% of its AUM in the stock, which has a P/E ratio of 17.8 compared to its industry P/E ratio of 47.3, indicating that it is undervalued compared to its peers.

Capacite Infraprojects Ltd

Capacite Infraprojects Ltd. is a leading Indian (EPC) firm, specializing in high-rise residential, commercial, IT parks, hospitality, and institutional buildings, including super-high-rise structures. The company uses advanced techniques and focuses on quality, safety, and sustainability for both private developers and government projects. Quant Small Cap Fund holds 0.19% of its AUM in the stock, which has a P/E ratio of 11.0 compared to its industry P/E ratio of 19.0, indicating that it is undervalued compared to its peers.

Maharashtra Seamless Ltd

Maharashtra Seamless Ltd. (MSL) is the flagship company of the D.P. Jindal Group, a leading Indian manufacturer of seamless and ERW (Electric Resistance Welded) steel pipes and tubes. The company serves industries like oil & gas, infrastructure, and power. Quant Small Cap Fund holds 0.25% of its AUM in the stock, which has a P/E ratio of 9.68 compared to its industry P/E ratio of 20.8, indicating that it is undervalued compared to its peers.

Oswal Pumps Ltd

Oswal Pumps Ltd. (OPL) is a fast-growing, vertically integrated Indian manufacturer established in 2003. The company specializes in energy-efficient pumps, especially solar-powered and grid-connected submersible & monoblock pumps, motors, and solar modules, serving agriculture and domestic needs with strong involvement in India’s PM-KUSUM scheme. Quant Small Cap Fund holds 0.27% of its AUM in the stock, which has a P/E ratio of 19.2 compared to its industry P/E ratio of 39.6, indicating that it is undervalued compared to its peers.

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