HDFC Defence Fund exists this small cap stock that went up by 500% in 5 years

This defence fund sold around 2.53 lakh shares of The Anup Engineering from its portfolio in January worth market value of Rs 56.91 crore. (Source: ACE MF)

According to data on NSE, this small cap stock surged by 510% in the last five years. In the last three years, the stock went up by 253.77%. In the last one month, this small cap stock went down by 3.72% and in the calendar year 2026 so far, the stock has gone down by 11.28%. The Anup Engineering has a total market capitalization of Rs 3,966 crore.

Also Read | Mutual funds reduce cash allocation by over Rs 1,900 crore to Rs 2.05 lakh crore in January

Portfolio change

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This defence fund reduced its exposure in two stocks which includes MTAR Technologies and Avalon Technologies. Around 2.61 lakh shares of MTAR Technologies were sold out from the portfolio and the fund had around 8 lakh shares of this stock in its portfolio in January compared to 10.61 lakh shares in December 2025 portfolio.

Around 5.10 lakh shares of Avalon Technologies were sold out from the portfolio and the fund had a total 4.93 lakh shares of this stock in its portfolio in the said time period. The fund increased its exposure in five stocks in January which included Bosch, Eicher Motors, Centum Electronics, Bharat Dynamics, and Mazagon Dock Shipbuilders. Among these 5 stocks, the maximum number of shares of Mazagon Dock Shipbuilders were added. Around 2.80 lakh shares of Mazagon Dock Shipbuilders were added to the portfolio taking the total number of shares to 8.95 lakh in January against 6.14 lakh in December 2025.

Around 1 lakh shares of Centum Electronics were added to the portfolio, followed by 57,544 shares of Bharat Dynamics, 50,000 shares of Eicher Motors, and 21,197 shares of Bosch which were added to the portfolio.

The exposure in 16 stocks remained unchanged in comparison to that in the previous month. These 16 stocks included some names such as BEML, Bharat Electronics, Bharat Forge, Aequs, Hindustan Aeronautics, Data Patterns (India), and Rishabh Instruments.

As a percentage to net asset value (NAV), the fund had the highest allocation of 19.49% in Bharat Electronics, followed by Hindustan Aeronautics where the allocation was 13.63%.

The lowest allocation was in Aequs of around 0.12% and nearly 2% was cash and cash equivalents and net current assets.

The fund had 52.02% allocation in aerospace and defence, 14.15% in auto components, and 13.66% in chemicals and petrochemicals.

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Portfolio details and performance

As of January 31, 2026 the fund had 23 stocks in its portfolio down from 24 stocks in the December portfolio. The fund had an AUM of Rs 7,793 crore as on January 31, 2026 against an AUM of Rs 7,390 crore in December 2025 and registered a growth of 5% on monthly basis.

Launched on June 2, 2023, the performance is benchmarked against Nifty India Defence – TRI and is managed by Rahul Baijal and Priya Ranjan.

HDFC Defence Fund is an open-ended equity scheme investing in Defence & allied sector companies. The investment objective of the fund is to provide long-term capital appreciation by investing predominantly in equity and equity related securities of Defence & allied sector companies.

According to the monthly release by the fund house, as of January 31, 2026 the fund has delivered a CAGR of 39.25% since its inception and in the last one year, the fund gained 22.05%.

The fund is suitable for investors who are seeking to generate long-term capital appreciation/income and want investment predominantly in equity and equity related instruments of defence and allied sector companies.

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