Four of India's most closely tracked small-cap investors - Ashish Kacholia, Mukul Agrawal, Dolly Khanna, and Madhusudan Kela - were net sellers of small-cap stocks in Q1 FY27, according to shareholding data from Trendlyne. The portfolio rejig comes after a sharp turnaround in market sentiment, with the Nifty gaining nearly 7% during the April-June quarter while the Nifty Smallcap index surged 24% and the Nifty Midcap index advanced more than 17%. Despite the strong rally, the four veterans largely chose to pare their holdings after several investments witnessed sharp rallies, with some turning into multibaggers this year.
Latest BSE shareholding data shows Ashish Kacholia reduced his stake in Yasho Industries to 2.08% from 2.37% at the end of March 2026 quarter. He also cut his holding in Fineotex Chemicals to 2.06% from 2.60%, reducing his stake by 0.54 percentage points during the quarter. Yasho Industries has rallied 114% in 2026, while Fineotex Chemicals has gained 58% over the last six months. Kacholia appears to have exited SG Finserv after the stock surged 52% in 2026, with his holding falling below the 1% disclosure threshold from 2.37%. According to The Economic Times, Kacholia has likely sold his entire stake in Walchandnagar Industries, a heavy engineering firm that more than doubled during Q1 FY27, with his name absent from the latest shareholding data.
Mukul Agrawal sold his stake in J Kumar Infraprojects after a weak run for the stock, which has declined about 33% over the past year. Surya Roshni has fallen 26% over the same period, while Intellect Design Arena has tumbled nearly 40% in one year. The moves come after several of their investments witnessed sharp rallies, with some turning into multibaggers this year, prompting profit booking.
Dolly Khanna's holdings in Rain Industries and Sharda Cropchem fell below the 1% disclosure threshold from 1.1% each at the end of March 2026 quarter, indicating likely exits. She also reduced her stake in Prakash Industries to 2.1% from 2.3% in the previous quarter. Among these stocks, Rain Industries has been the best performer, rallying 42% in 2026 so far, while Sharda Cropchem has gained 6%. Prakash Industries has declined 13% over the last one year.
Despite the strong rally, analysts remain selectively bullish, recommending fundamentally strong small- and mid-cap stocks while cautioning that elevated valuations leave limited room for disappointment. According to brokerage reports, the outlook is turning more constructive with incremental allocation shifting towards select small- and mid-cap stocks as earnings breadth improves. However, Axis Securities cautioned that current valuation multiples in the segment leave limited room for disappointment, with future performance depending on companies delivering sustained earnings growth and healthy free cash flow generation.
