To seek long term capital appreciation by investing in companies that can be termed as smallcaps.
Pure Small-Cap Leadership: High Operating Leverage & Scalable Niches | Inception November 2009 (16+ Years Track Record)
Predominant focus on high-potential small-cap companies (90.4% allocation) with niche dominance and scalable runways.
Identifies early-stage leaders where incremental revenue expansion creates non-linear earnings and margin acceleration.
Demands clean corporate governance, virtually debt-free balance sheets, and superior Return on Capital (ROCE >19%).
Substantial high-conviction tilts in Capital Goods (+15.4%) and Healthcare (+14.8%) to capture India's manufacturing renaissance.
Value of ₹1.00 Crore invested at launch (November 2009) vs S&P BSE 500 TRI Benchmark Index
₹1.00 Crore invested at launch (Nov 2009) has grown to ₹11.01 Crore in Sundaram Rising Stars, outperforming the benchmark (₹6.47 Crore) by ₹4.54 Crore.
As on 30 September 2026 (TWRR Basis)
Returns up to 1 year are absolute; returns over 1 year are Compounded Annualized (CAGR).
Strategy vs Benchmark (3Y monthly data points)
High-conviction divergence vs S&P BSE 500 TRI Benchmark
High-growth additions to the portfolio
Global niche leader in fermentation APIs (immunosuppressants, oncology). USFDA approval for Tofacitinib Tablets ($500M market); Q1 revenue +26% to ₹257 Cr and EBITDA margin expanded to 32.0%. 25%+ EPS compounding expected.
Riding India's GCC boom with 10.61 msf across 137 centers in 17 cities (86% occupancy). Q1 revenue +37% to ₹428 Cr, EBIT margin improved to 13%, with 3.9 msf / 97,000 signed seats converting over 12-16 months.
Pure play on India's e-commerce & quick-commerce boom. Q1 FY27 revenue +65% YoY to ₹1,358 Cr. 5 consecutive quarters of 60%+ revenue growth with rising route density and Tier-2 expansion.
Import substitution leader with ~50% domestic share in chromium chemicals and 40% in barium carbonate. Q1 revenue +24.9% to ₹433 Cr, 5-year average ROE ~21% and ROCE ~19% with South Africa backward integration mine coming online.
Disciplined capital reallocation
The cost-led margin expansion thesis has seen persistent delays. Fuel & packaging inflation coupled with rolled-back price hikes squeezed EBITDA/tonne to ₹675. Capacity is maxed out until FY29 expansion, leaving limited operating leverage. Capital redeployed into higher-conviction alpha ideas.
“Sundaram Rising Stars continues to identify emerging market leaders early in their business cycle. Supported by strong corporate balance sheets, clean governance, and capacity expansions across clean energy, APIs, and outsourced infrastructure, our high-conviction small-cap picks remain primed for multi-year earnings compounding.”
— Mr. Darshan Engineer, Fund Manager
As on 30 September 2026 | Sundaram Alternates Fact Sheet
Investors looking to participate in early-stage emerging market leaders within India's small-cap universe.
Investors seeking high-potential wealth compounders with superior operating leverage and ROCE exceeding 19%.
High-net-worth investors with a disciplined investment horizon of above 5 years comfortable with small-cap volatility.
Those seeking pure small-cap exposure (90.4%) with dynamic allocations across high-growth domestic themes.
Investors desiring substantial benchmark-beating alpha (+46.00% 1Y alpha vs S&P BSE 500 TRI).
Seeking long-term institutional execution backed by a 16+ year compounding track record (₹1 Cr to ₹11.01 Cr).
Disclaimer: Past performance may or may not be sustained in future. Sundaram Alternates does not offer guaranteed or assured returns. Returns up to 1 year are absolute & over 1 year are Compounded Annualized (CAGR). Return Calculation Method: Time Weighted Rate of Return (TWRR). Securities investments are subject to market risks, please read the Disclosure Document carefully before investing. Primary Benchmark is S&P BSE 500 TRI. Secondary Benchmark is Nifty Smallcap 250.