Archive · 20 Jan 2026
Investors Bet on Small-Cap Stocks for 2026
Two well-known investors, Porinju Veliyath and Madhusudan Kela, have recently bought shares in small-cap companies.
Veliyath invested in Associated Alcohols, a company that makes alcohol and hand sanitizers.
Kela invested in Emkay Global, a financial services company.
Both companies have shown growth over the years, but Emkay Global has seen a recent drop in profits.
The investors believe these companies have strong futures and are good buys, even though some people think the small-cap rally might be ending.
They are betting on long-term growth and the companies' strong positions in their industries.
Porinju Veliyath and Madhusudan Kela invested in small-cap stocks Emkay Global and Associated Alcohols respectively.
Emkay Global has seen a financial turnaround with sales growing from Rs 135 cr in FY20 to Rs 360 cr in FY25, but profits dropped 88% in H1FY26.
Associated Alcohols has shown consistent growth with sales increasing from Rs 523 cr in FY20 to Rs 1,075 cr in FY25.
Both stocks are trading at a discount from their all-time highs, with Emkay Global at a 30% discount and Associated Alcohols at a 44% discount.
Investors are debating whether the small-cap rally is over or if it will continue, with Veliyath and Kela betting on long-term growth.
- Who
- Porinju Veliyath and Madhusudan Kela
- What
- Invested in small-cap stocks Emkay Global and Associated Alcohols
- When
- Quarter ending December 2025
- Where
- India
- Why
- To capitalize on the small-cap rally and strategic growth potential
- Investors
- Porinju Veliyath and Madhusudan Kela
- Stocks Purchased
- Emkay Global Financial Services and Associated Alcohols & Breweries
- Market Cap of Emkay Global
- Rs 750 cr
- Market Cap of Associated Alcohols
- Rs 1,578 cr
- Stake Purchased by Kela
- 1.1% in Emkay Global
- Stake Purchased by Veliyath
- 1.05% in Associated Alcohols
- Current PE of Emkay Global
- 34x
- Current PE of Associated Alcohols
- 18x
