4 Smallcap SBI Mutual Fund Stocks to Watch for Future Multibagger Potential: Kalpataru Projects, Happy Forgings, Elgi Equipments and Lemon Tree

SBI mutual fund stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Kalpataru Projects, Happy Forgings, Elgi Equipments and Lemon Tree meet that test, with market caps from Rs 8,704 crore to Rs 24,326 crore and Kalpataru Projects offering the strongest latest-quarter profit growth at 45.85%. Each of these companies has a market capitalisation below Rs 30,000 crore and SBI 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 SBI 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 SBI 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 SBI Mutual Fund Stocks and Why Do They Attract Multibagger Interest?

SBI mutual fund stocks are shares of smaller companies in which SBI Mutual Fund or one of its schemes is named among the top domestic institutional holders in the latest shareholding pattern. The four here cover infrastructure projects, forgings, air compressors and hotels.

When a leading fund house like SBI Mutual Fund holds a large stake, it shows that its research teams have studied the business closely and backed it with investors money. For SBI mutual fund stocks, both FY26 and the latest quarter showed growth. For SBI mutual fund stocks, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of SBI mutual fund stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for SBI mutual fund stocks before you decide.

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

Prices are closing prices as of 28 October 2026. Kalpataru Projects has the lowest PE of the group at 21.56, while Elgi Equipments posts the highest return on equity at 19.28%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Debt to Equity	52-Week Range (Rs)
Kalpataru Projects International	1,324.70	24,326	21.56	22.89	13.37%	0.46	1,007.10 to 1,490.00
Happy Forgings	1,784.60	17,755	54.23	52.03	14.17%	0.15	888.75 to 2,470.00
Elgi Equipments	513.70	17,495	39.07	45.93	19.28%	0.24	408.25 to 653.40
Lemon Tree Hotels	107.15	8,704	29.22	36.77	16.32%	1.44	99.61 to 170.68

Kalpataru Projects: Revenue Up 21.76% in FY26

Kalpataru Projects International executes transmission, railway, building and water projects in India and abroad. It reported FY26 revenue of Rs 27,247.93 crore, up 21.76% year on year, and net profit of Rs 1,030.63 crore, up 81.68%. Net profit has compounded at 17.81% a year since FY22, while revenue has grown 16.35% a year. Operating margin was 9.48% in FY26. The debt-to-equity ratio is 0.46.

In the June 2026 quarter, revenue rose 4.81% to Rs 6,485.17 crore and net profit grew 45.85% to Rs 311.53 crore. The stock trades at a PE of 21.56 against an industry PE of 22.89, below the sector average, with a return on equity of 13.37%.

Happy Forgings: 20.66% Profit CAGR Since FY22

Happy Forgings makes complex, safety-critical forged and machined components for commercial vehicles, passenger vehicles, tractors and industrial customers. It reported FY26 revenue of Rs 1,577.15 crore, up 9.04% year on year, and net profit of Rs 301.63 crore, up 12.78%. Net profit has compounded at 20.66% a year since FY22, while revenue has grown 16.16% a year. Operating margin was 32.43% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.

The stock trades at a PE of 54.23 against an industry PE of 52.03, with a return on equity of 14.17%. In the June 2026 quarter, revenue rose 26.46% to Rs 460.50 crore and net profit grew 39.23% to Rs 91.46 crore. The share price is up 97.54% over the past year. Foreign investors raised their holding from 2.02% in September 2025 to 2.37% in September 2026.

Elgi Equipments: 24.61% Profit CAGR Since FY22

Elgi Equipments makes air compressors for industrial customers in India and overseas. It reported FY26 revenue of Rs 4,068.50 crore, up 14.02% year on year, and net profit of Rs 430.20 crore, up 22.84%. Net profit has compounded at 24.61% a year since FY22, while revenue has grown 12.06% a year. Operating margin was 17.53% in FY26. The debt-to-equity ratio is 0.24.

In the June 2026 quarter, revenue rose 22.13% to Rs 1,082.60 crore and net profit grew 20.68% to Rs 103.30 crore. The share price has gained 182.78% over five years and 21.42% over the past year. Domestic institutions raised their holding from 5.23% in June 2025 to 10.13% in June 2026. The stock trades at a PE of 39.07 against an industry PE of 45.93, below the sector average, with a return on equity of 19.28%.

Lemon Tree: Five-Year Gain of 107.31%

Lemon Tree Hotels operates hotels in the upper-midscale, midscale and economy segments under brands such as Lemon Tree, Aurika and Red Fox. It reported FY26 revenue of Rs 1,465.01 crore, up 12.78% year on year, and net profit of Rs 288.32 crore, up 18.58%. Revenue has compounded at 37.66% a year since FY22. Operating margin was 46.90% in FY26.

The stock trades at a PE of 29.22 against an industry PE of 36.77, below the sector average, with a return on equity of 16.32%. In the June 2026 quarter, revenue rose 9.25% to Rs 346.76 crore and net profit grew 19.21% to Rs 57.34 crore. The share price has gained 107.31% over five years.

SBI Mutual Fund Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these SBI 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)
Kalpataru Projects	27,247.93	1,030.63	21.76%	16.35%	4.81%	9.97%
Happy Forgings	1,577.15	301.63	9.04%	16.16%	26.46%	33.81%
Elgi Equipments	4,068.50	430.20	14.02%	12.06%	22.13%	16.02%
Lemon Tree	1,465.01	288.32	12.78%	37.66%	9.25%	43.98%

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Institutional Holding in Kalpataru Projects, Happy Forgings, Elgi Equipments and Lemon Tree

Institutional holding shows who is backing these SBI mutual fund stocks alongside the promoter. The table uses the latest reported quarter for each. Kalpataru Projects has the deepest institutional backing, with FII and DII together holding 55.61% as of June 2026. Domestic institutions increased their holding over the past year in Elgi Equipments (from 5.23% to 10.13%).

Stock	Promoter	FII	DII	Public	Quarter
Kalpataru Projects	33.58%	10.78%	44.83%	10.81%	June 2026
Happy Forgings	78.44%	2.37%	14.93%	4.26%	September 2026
Elgi Equipments	31.19%	21.90%	10.13%	36.78%	June 2026
Lemon Tree	22.32%	19.45%	14.35%	43.89%	June 2026

Risks to Weigh in SBI Mutual Fund Stocks

Being careful with SBI 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: Happy Forgings trades at a PE of 54.23 against an industry PE of 52.03, 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 SBI Mutual Fund Stocks

Picking from SBI 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 (22.89 to 52.03) 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 SBI mutual fund stocks, Kalpataru Projects stands out for the strongest latest-quarter profit growth at 45.85%, Happy Forgings for 9.04% revenue growth in FY26, Elgi Equipments for the highest return on equity at 19.28% and Lemon Tree for 12.78% revenue growth in FY26. 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 SBI 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 SBI Mutual Fund Stocks to Watch

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

Ans. Kalpataru Projects, Happy Forgings, Elgi Equipments and Lemon Tree are the 4 names this list highlights, with market caps of Rs 24,326 crore, Rs 17,755 crore, Rs 17,495 crore and Rs 8,704 crore respectively. Kalpataru Projects is notable for the strongest latest-quarter profit growth at 45.85%. Happy Forgings stands out for 9.04% revenue growth in FY26. Elgi Equipments offers the highest return on equity at 19.28%. Lemon Tree brings 12.78% revenue growth in FY26. These are watchlist names for SBI mutual fund stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Elgi Equipments a good stock for long-term investors?

Ans. Elgi Equipments has a return on equity of 19.28%, a PE of 39.07 against an industry PE of 45.93 and a market cap of Rs 17,495 crore. Net profit has compounded at 24.61% a year since FY22, and FY26 revenue rose 14.02% while June 2026 quarter net profit grew 20.68%. Long-term returns in SBI 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 Happy Forgings become a multibagger from here?

Ans. Happy Forgings has a market cap of Rs 17,755 crore. A multibagger outcome in SBI mutual fund stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 20.66% a year since FY22, and FY26 revenue rose 9.04%. At a PE of 54.23 against an industry PE of 52.03, valuation should be checked against that growth before investing.

What is the market cap of Kalpataru Projects, Happy Forgings, Elgi Equipments and Lemon Tree?

Ans. As of 28 October 2026, Kalpataru Projects has a market cap of Rs 24,326 crore, Happy Forgings has a market cap of Rs 17,755 crore, Elgi Equipments has a market cap of Rs 17,495 crore and Lemon Tree has a market cap of Rs 8,704 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 SBI mutual fund stocks.

What are the risks of investing in SBI 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. Happy Forgings trades at a PE of 54.23 against an industry PE of 52.03, so earnings growth needs to hold up.

Is Kalpataru Projects trading below its industry PE?

Ans. Kalpataru Projects trades at a PE of 21.56 against an industry PE of 22.89. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 17.81% a year since FY22 and FY26 revenue rose 21.76%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in Kalpataru Projects, Happy Forgings, Elgi Equipments and Lemon Tree?

Ans. As of the latest reported quarter, FII and DII together hold 55.61% of Kalpataru Projects (10.78% and 44.83%), 17.30% of Happy Forgings (2.37% and 14.93%), 32.03% of Elgi Equipments (21.90% and 10.13%) and 33.80% of Lemon Tree (19.45% and 14.35%). Rising institutional holding is a useful signal in SBI mutual fund stocks, though it should be read with earnings trends rather than on its own.