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Summary: In July, mutual funds quietly ramped up their bets on select small-cap stocks, some seeing over 9 percentage points of fresh buying. From a Mumbai-based real estate player to a luxury watch retailer and a tyre recycler with global ambitions, the names span diverse sectors but have one thing in common: rising institutional conviction. Curious which five companies made the cut and why fund managers are backing them now? Read on to find out.
Mutual funds were active buyers in the small-cap space this July, with select names seeing a sharp jump in institutional holdings. From real estate developers to niche financials, luxury retail to tyre recyclers, the buying interest spanned diverse sectors.
Let’s take a look at the five small-cap stocks that saw the highest increase in mutual fund ownership last month and the stories behind why they’re catching attention.
| Company | Stock Rating | Mutual fund stake (July 2025) | Mutual fund stake (June 2025) | Change (% points) |
|---|---|---|---|---|
| Marathon Nextgen Realty | ★★★★ | 10.66% | 1.57% | 9.09 |
| India Shelter Finance Corporation | ★★★★ | 14.97% | 10.97% | 4.00 |
| Ethos | ★★★ | 16.23% | 13.14% | 3.10 |
| Tinna Rubber and Infrastructure | ★★★ | 5.64% | 3.02% | 2.61 |
| ICRA | ★★★★★ | 19.63% | 17.34% | 2.30 |
Marathon Nextgen Realty
Marathon Nextgen Realty is a Mumbai-based real estate developer with a legacy dating back to 1969. Its diversified portfolio spans affordable housing, luxury residences, commercial spaces and townships across key MMR (Mumbai Metropolitan Region) micro-markets such as Panvel, Bhandup, Dombivli, Byculla and Lower Parel.
With over 100 completed projects and 418 acres of land bank, it’s scaling up post-merger to unlock growth, backed by strong governance and Rs 900 crore QIP (qualified institutional placement) funding.
| P/E | 5Y revenue growth | 5Y net profit growth | Return on equity | Return on capital employed |
|---|---|---|---|---|
| 19.3 | 18.48% | 48.81% | 15.94% | 16.44% |
India Shelter Finance Corporation
India Shelter Finance lends to families often left out by big banks—self-employed, middle-income borrowers in Tier 2 and 3 cities. Its average loan size is just Rs 11 lakh, mostly for home construction or purchase.
With over 230 branches across 15 states, strong underwriting and tech-driven processes, the company is chasing growth while keeping asset quality in check.
| P/E | 3Y revenue growth | 3Y net profit growth | Return on equity | Return on assets |
|---|---|---|---|---|
| 23.4 | 37.54% | 43.29% | 14.12% | 4.91% |
Ethos
Ethos is India’s largest luxury watch retailer, offering brands like Rolex, Omega and Tissot across 60+ stores. It caters to the rising demand from affluent buyers and watch collectors, while also selling pre-owned timepieces.
With growing online sales, a high-margin product mix and rising premiumisation, the company is ticking along nicely. It clocked revenue of Rs 889 crore in FY24, up 22 per cent year-over-year.
| P/E | 5Y revenue growth | 5Y net profit growth | Return on equity | Return on capital employed |
|---|---|---|---|---|
| 71.4 | 22.28% | 110.24% | 10.99% | 17.43% |
Tinna Rubber and Infrastructure
Tinna Rubber and Infrastructure is one of India’s largest recyclers of end-of-life tyres, converting waste into products for roads, steel, consumer goods, and industrial uses. In FY25, the company crossed Rs 500 crore revenue with 39 per cent growth, processing 1.85 lakh tonnes of tyres.
With new plants at Varale and Oman running strong and expansion plans in Saudi Arabia and South Africa, Tinna is driving growth through large-scale recycling.
| P/E | 5Y revenue growth | 5Y net profit growth | Return on equity | Return on capital employed |
|---|---|---|---|---|
| 33.5 | 35.89% | 50.39% | 36.02% | 32.83% |
ICRA
ICRA, an affiliate of Moody’s, is among India’s top credit rating agencies, offering ratings, research, risk analytics and ESG (Environmental, Social and Governance) assessments. In FY25, the company reported revenue of Rs 498 crore and net profit of Rs 171 crore, up 12.5 per cent year-over-year.
With over 2,600 live ratings, 600+ research reports and new ventures in ESG and risk solutions, ICRA continues to strengthen its position as a trusted financial insights provider.
| P/E | 5Y revenue growth | 5Y net profit growth | Return on equity | Return on capital employed |
|---|---|---|---|---|
| 34.2 | 10.11% | 13.80% | 15.82% | 21.81% |
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Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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