5 most-bought small-cap stocks by mutual funds in May 2025

Bonus: Want to know which mutual funds own your favourite stocks? Scroll to the end of the story to find out.

5-most-bought-small-cap-stocks-mutual-funds-may-2025 Anand Kumar/AI-Generated Image

May 2025 saw some interesting shifts in mutual fund portfolios.

From paints to healthcare service providers, fund managers made selective bets across sectors. The moves weren’t loud, but they offered clues about what the smart money is tracking.

So, without further ado, here are the five small-cap stocks that saw the biggest jump in mutual fund holding last month.

Company	Stock Rating	Mutual fund stake (May 2025)	Mutual fund stake (April 2025)	Change (% points)
Sundaram Clayton	★★	20.2	17.2	3.0
Indigo Paints	★★★	17.7	15.0	2.7
Medi Assist Healthcare Services	★★★★	25.3	22.8	2.5
Go Fashion (India)	★★★★	24.3	22.6	1.7
Wendt (India)	★★★	7.6	6.1	1.6

Sundaram Clayton

Sundaram-Clayton makes aluminium parts used in vehicles, such as engine and transmission components. The company operates in two main areas—India and overseas markets.

In the financial year 2024, about 64 per cent of its total revenue came from exports, mainly to North America and Europe. It earned Rs 2,316 crore from international sales and Rs 1,297 crore from India. Its factories ran at around 74 per cent capacity during the year.

3Y revenue	3Y net profit	Return on equity	Return on capital employed
7.9%	-181%	-17.5%	-2.1%

Indigo Paints

Indigo Paints is a decorative paints company with a wide portfolio that includes emulsions, enamels, primers, putties and waterproofing chemicals. It operates mainly in India and has also entered the construction chemicals space through its subsidiary, Apple Chemie.

In FY24, the company reported revenue of Rs 1,306 crore. It runs five manufacturing plants and is expanding capacity in Jodhpur to meet future demand.

P/E	5Y revenue	5Y net profit	Return on equity	Return on capital employed
36.6	18.56%	40.8%	18%	24%

Medi Assist Healthcare Services

Medi Assist is a leading health benefits administrator in India, serving insurers, corporates, retail policyholders and government health schemes.

In FY25, it managed premiums worth Rs 21,108 crore—Rs 18,401 crore from group business and Rs 2,706 crore from retail. Government-sponsored schemes added Rs 79.7 crore. Its international arm, Mayfair We Care, operates across 185+ countries.

P/E	5Y revenue	5Y net profit	Return on equity	Return on capital employed
38.2	9.35%	22.18%	17.2%	20.6%

Go Fashion (India)

Go Fashion (India) , known for its ‘Go Colors’ brand, specialises in women’s bottom wear across ethnic, western, fusion, denim and athleisure segments. Operating in 160 Indian cities, it sells primarily through exclusive brand outlets, which contributed 71 per cent to FY25 revenue.

P/E	5Y revenue	5Y net profit	Return on equity	Return on capital employed
48.5	21.8%	21.8%	14.7%	27.1%

Wendt (India)

Wendt (India ) is a manufacturer of super abrasives, precision grinding machines and engineered components. Its business spans three key segments: Super Abrasives (61 per cent of FY25 revenue), Machines and Accessories (19 per cent) and Precision Products (12 per cent). Around 22 per cent of its revenue comes from exports, mainly to the US, UK, Germany and South Korea. Its Hosur plant operates at 70–89 per cent capacity across product lines