4 Smallcap Franklin India Mutual Fund Stocks to Watch for Future Multibagger Potential: Kajaria Ceramics, CESC, Metropolis and Zensar

Franklin India mutual fund stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Kajaria Ceramics, CESC, Metropolis and Zensar meet that test, with market caps from Rs 11,067 crore to Rs 18,318 crore and Kajaria Ceramics offering the strongest latest-quarter profit growth at 55.04%. Each of these companies has a market capitalisation below Rs 30,000 crore and Franklin India Mutual Fund or one of its schemes listed among its top domestic institutional holders, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a market capitalisation below Rs 30,000 crore and Franklin India Mutual Fund or one of its schemes listed among its top domestic institutional holders, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap below Rs 30,000 crore. Investors screening Franklin India mutual fund stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 28 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are Franklin India Mutual Fund Stocks and Why Do They Attract Multibagger Interest?

Franklin India mutual fund stocks are shares of smaller companies in which Franklin India Mutual Fund or one of its schemes is named among the top domestic institutional holders in the latest shareholding pattern. The four here cover ceramic tiles, power distribution, diagnostics and IT services.

When a respected fund house like Franklin India Mutual Fund holds a large stake, it shows that its research teams have studied the business closely and backed it with investors money. For Franklin India mutual fund stocks, both FY26 and the latest quarter showed growth. With Franklin India mutual fund stocks, comparing valuation, growth and balance sheet strength together works better than relying on one number. Every company in the table below passed a rising-profit check, and the figures for Franklin India mutual fund stocks are complete. Read each company's latest results and exchange filings before acting on Franklin India mutual fund stocks.

Franklin India Mutual Fund Stocks at a Glance: Price, Market Cap, PE and ROE

Prices are closing prices as of 28 October 2026. CESC has the lowest PE of the group at 10.51, while Zensar posts the highest return on equity at 16.41%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Debt to Equity	52-Week Range (Rs)
Kajaria Ceramics	1,103.70	18,318	33.45	30.35	15.83%	0.07	869.60 to 1,293.80
CESC	123.61	17,135	10.51	22.18	12.31%	1.73	123.45 to 204.50
Metropolis Healthcare	551.20	11,547	56.91	60.75	12.56%	0.15	453.50 to 733.00
Zensar Technologies	497	11,067	14.26	18.27	16.41%	0.02	416.15 to 822.00

Kajaria Ceramics: Debt-to-Equity of 0.07

Kajaria Ceramics is the largest tile maker in India by capacity, selling ceramic and vitrified tiles across the country. It reported FY26 revenue of Rs 4,883.22 crore, up 4.39% year on year, and net profit of Rs 490.06 crore, up 40.70%. Net profit has compounded at 6.37% a year since FY22, while revenue has grown 6.95% a year. Operating margin was 18.05% in FY26. The debt-to-equity ratio is 0.07, which keeps interest costs low.

In the June 2026 quarter, revenue rose 20.54% to Rs 1,345.22 crore and net profit grew 55.04% to Rs 171.03 crore. The stock trades at a PE of 33.45 against an industry PE of 30.35, with a return on equity of 15.83%.

CESC: Profit Compounding at 3.60% a Year

CESC generates and distributes power, with a distribution licence area in Kolkata, and is growing its renewable portfolio. It reported FY26 revenue of Rs 18,927.29 crore, up 8.93% year on year, and net profit of Rs 1,617.57 crore, up 13.20%. Revenue has compounded at 10.22% a year since FY22. Operating margin was 26.27% in FY26.

The stock trades at a PE of 10.51 against an industry PE of 22.18, below the sector average, with a return on equity of 12.31%. The dividend yield is 4.67%. In the June 2026 quarter, revenue rose 5.18% to Rs 5,559 crore and net profit grew 3.71% to Rs 419 crore. Domestic institutions raised their holding from 25.38% in June 2025 to 26.14% in June 2026.

Metropolis: Revenue Up 24.15% in FY26

Metropolis Healthcare provides pathology and diagnostic services through a network of laboratories, clinical labs and collection centres. It reported FY26 revenue of Rs 1,671.43 crore, up 24.15% year on year, and net profit of Rs 191.18 crore, up 31.39%. Revenue has compounded at 7.62% a year since FY22. Operating margin was 25.63% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.

In the June 2026 quarter, revenue rose 15.69% to Rs 455.32 crore and net profit grew 25.70% to Rs 56.88 crore. Domestic institutions raised their holding from 32.40% in June 2025 to 35.12% in June 2026. The stock trades at a PE of 56.91 against an industry PE of 60.75, below the sector average, with a return on equity of 12.56%.

Zensar: Debt-to-Equity of 0.02

Zensar Technologies provides digital engineering, cloud and application services to global clients. It reported FY26 revenue of Rs 5,921.30 crore, up 8.83% year on year, and net profit of Rs 774.60 crore, up 19.21%. Net profit has compounded at 16.42% a year since FY22, while revenue has grown 7.82% a year. Operating margin was 19.78% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.

The stock trades at a PE of 14.26 against an industry PE of 18.27, below the sector average, with a return on equity of 16.41%. The dividend yield is 3.07%. In the June 2026 quarter, revenue rose 8.59% to Rs 1,565.60 crore and net profit grew 0.99% to Rs 183.80 crore. Domestic institutions raised their holding from 20.52% in June 2025 to 21.99% in June 2026.

Franklin India Mutual Fund Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these Franklin India mutual fund stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.

Stock	Revenue (Rs Cr)	Net Profit (Rs Cr)	Revenue Growth (YoY)	4-Year Revenue CAGR	Latest Quarter Revenue Growth	Operating Margin (Latest Quarter)
Kajaria Ceramics	4,883.22	490.06	4.39%	6.95%	20.54%	20.98%
CESC	18,927.29	1,617.57	8.93%	10.22%	5.18%	20.95%
Metropolis	1,671.43	191.18	24.15%	7.62%	15.69%	25.83%
Zensar	5,921.30	774.60	8.83%	7.82%	8.59%	18.44%

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Institutional Holding in Kajaria Ceramics, CESC, Metropolis and Zensar

Institutional holding shows who is backing these Franklin India mutual fund stocks alongside the promoter. The table uses the latest reported quarter for each. Metropolis has the deepest institutional backing, with FII and DII together holding 46.15% as of June 2026. Domestic institutions increased their holding over the past year in CESC (from 25.38% to 26.14%), Metropolis (from 32.40% to 35.12%) and Zensar (from 20.52% to 21.99%).

Stock	Promoter	FII	DII	Public	Quarter
Kajaria Ceramics	47.69%	11.58%	26.25%	14.48%	June 2026
CESC	52.11%	11.47%	26.14%	10.28%	June 2026
Metropolis	48.86%	11.03%	35.12%	4.99%	June 2026
Zensar	48.99%	10.73%	21.99%	18.29%	June 2026

Risks to Weigh in Franklin India Mutual Fund Stocks

Being careful with Franklin India mutual fund stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:

• Past growth may not repeat.
• Share prices can move sharply in either direction.
• Valuation: Kajaria Ceramics trades at a PE of 33.45 against an industry PE of 30.35, so earnings need to keep growing to support the price.
• Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.

How to Choose Between Franklin India Mutual Fund Stocks

Picking from Franklin India mutual fund stocks comes down to four checks, applied in order.

1. Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
2. Compare each PE with the industry PE (18.27 to 60.75) and ask whether the growth rate justifies any gap.
3. Track net profit growth, the operating margin and the return on equity in every quarterly result.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among Franklin India mutual fund stocks, Kajaria Ceramics stands out for the strongest latest-quarter profit growth at 55.04%, CESC for the lowest PE of the group at 10.51, Metropolis for 24.15% revenue growth in FY26 and Zensar for the highest return on equity at 16.41%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing Franklin India mutual fund stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.

Frequently Asked Questions on Franklin India Mutual Fund Stocks to Watch

Which are the best Franklin India mutual fund stocks to watch for multibagger potential?

Ans. Kajaria Ceramics, CESC, Metropolis and Zensar are the 4 names this list highlights, with market caps of Rs 18,318 crore, Rs 17,135 crore, Rs 11,547 crore and Rs 11,067 crore respectively. Kajaria Ceramics is notable for the strongest latest-quarter profit growth at 55.04%. CESC stands out for the lowest PE of the group at 10.51. Metropolis offers 24.15% revenue growth in FY26. Zensar brings the highest return on equity at 16.41%. These are watchlist names for Franklin India mutual fund stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Zensar a good stock for long-term investors?

Ans. Zensar has a return on equity of 16.41%, a PE of 14.26 against an industry PE of 18.27 and a market cap of Rs 11,067 crore. Net profit has compounded at 16.42% a year since FY22, and FY26 revenue rose 8.83% while June 2026 quarter net profit grew 0.99%. Long-term returns in Franklin India mutual fund stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Kajaria Ceramics become a multibagger from here?

Ans. Kajaria Ceramics has a market cap of Rs 18,318 crore. A multibagger outcome in Franklin India mutual fund stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 6.37% a year since FY22, and FY26 revenue rose 4.39%. At a PE of 33.45 against an industry PE of 30.35, valuation should be checked against that growth before investing.

What is the market cap of Kajaria Ceramics, CESC, Metropolis and Zensar?

Ans. As of 28 October 2026, Kajaria Ceramics has a market cap of Rs 18,318 crore, CESC has a market cap of Rs 17,135 crore, Metropolis has a market cap of Rs 11,547 crore and Zensar has a market cap of Rs 11,067 crore. All of them qualify as smallcaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on Franklin India mutual fund stocks.

What are the risks of investing in Franklin India mutual fund stocks?

Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Kajaria Ceramics trades at a PE of 33.45 against an industry PE of 30.35, so earnings growth needs to hold up.

Is CESC trading below its industry PE?

Ans. CESC trades at a PE of 10.51 against an industry PE of 22.18. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (FY26 revenue rose 8.93% and June 2026 quarter net profit grew 3.71%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in Kajaria Ceramics, CESC, Metropolis and Zensar?

Ans. As of the latest reported quarter, FII and DII together hold 37.83% of Kajaria Ceramics (11.58% and 26.25%), 37.61% of CESC (11.47% and 26.14%), 46.15% of Metropolis (11.03% and 35.12%) and 32.72% of Zensar (10.73% and 21.99%). Rising institutional holding is a useful signal in Franklin India mutual fund stocks, though it should be read with earnings trends rather than on its own.