This real estate stock has made it to 3 Parag Parikh funds

Parag Parikh Financial Advisory Services (popularly called PPFAS) quietly accumulated shares of an under-the-radar small-cap stock — a company that owns one of India’s largest exhibition venues and earns stable rental income from a booming Mumbai real estate pocket. It's also debt-free (which is rare) and generates steady cash flows. So, what’s this quiet small-cap that PPFAS is betting on, and are any other fund houses seeing what they see?

When Parag Parikh Mutual Fund makes a move, seasoned investors take note — not because it’s flashy, but because it rarely chases the herd. And over the last two months, in May and June, this reputed fund house has been quietly building a stake in Nesco, a low-profile small-cap player operating in real estate, exhibitions and industrial infrastructure.

Unlike buzzy stocks that draw dozens of institutional suitors, Nesco has largely flown under the radar. But according to recent portfolio disclosures, it now features in not one, but three Parag Parikh schemes. That includes the Dynamic Asset Allocation fund, where it commands a 1.18 per cent weight — translating to a Rs 26.5 crore investment — as well as smaller exposures in the flexi-cap and tax-saving funds.

Interestingly, very few fund houses have Nesco in their portfolio. Some of the active funds are UTI Small Cap Fund (Rs 60 crore invested; 1.23 per cent weight), ICICI Prudential Smallcap Fund (0.41 per cent) and WhiteOak Capital Multi Cap Fund (a modest Rs 3.53 crore). It’s a lonely crowd — which makes Parag Parikh’s positioning all the more intriguing.

So, what does Nesco do?

Founded in the 1930s, Nesco may not be a household name, but it runs a diversified set of businesses.

The Mumbai-based company operates a unique blend of businesses across real estate, exhibitions, industrial manufacturing and hospitality. It is best known for the Bombay Exhibition Centre (BEC) — one of India’s largest exhibition venues — which it owns and operates in the Western suburbs of Mumbai. BEC hosts trade shows, conventions and large-scale events, contributing a major chunk of Nesco’s revenues.

The company also owns and leases out commercial office space under its IT Park division, which houses several multinational tenants. This real estate arm benefits from consistent rental income and relatively low capital churn.

Beyond real estate, Nesco has a legacy business in industrial capital goods and in the hospitality sector.

Despite its low profile, the company has long enjoyed zero-debt status and consistent cash generation.

For a fund house that’s known for its patient, long-term investing style, Nesco appears to check the right boxes — stable cash flows, undervalued assets and limited institutional ownership.

Of course, this isn’t a buy call. But it does raise a question every thoughtful investor should ask. Because when Parag Parikh buys something quietly… should you be paying louder attention?

Is Nesco one of our recommended stocks?

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Also read: Parag Parikh's Flexi Cap's new multi-crore bet on this stock