After a stellar rally in 2017, it has been a quiet year so far for smallcap stocks, even as the smallcap index has corrected by more than 5% since January. But, a few top performing mutual funds including HDFC Smallcap Fund and SBI Small and Midcap Fund have managed to post healthy returns of more than 31% each in the last one year period. Data from Value Research shows that SBI Small and Midcap Fund has returned nearly 38% in the last one year. Notably, the fund\u2019s returns in the 3-year and 5 year period have also beaten the benchmark at 26% and 36% respectively. HDFC Smallcap fund has returned 31%, 24% and 25.07% in the 1-year, 3-year and 5-year period. A closer look at the the constituents of these funds reveals that the funds have invested in very different stocks. Top holdings in HDFC Smallcap fund includes shares of Sonata Software, Redington India, Carborundum Universal, SKF India etc, while SBI Small and Midcap\u2019s top holdings are Westlife development, Kirloskar Oil Engines and LT Foods. Both the funds have a single stock in common- the shares of Power Mech Projects.\u00a0HDFC Smallcap fund has invested 1.78% of its Rs 2,968 crore AUM, while SBI Small and Midcap Fund has invested 4.06% of its Rs 771 crore AUM. \u00a0 Notably, Power Mech Projects shares have risen by nearly 70% in the last one year period. Power Mech Projects shares closed at Rs 980 on NSE this afternoon. Following the company\u2019s Q3 earnings, Nirmal Bang Securities had a buy rating on the shares with a target price of Rs 1,100. \u201cWith a strong order book and robust order inflow outlook, we expect 27% consolidated earnings CAGR over FY17-FY20E. The current valuation is attractive considering FY20E RoCE at 24%, fixed-asset turnover at 4x and operating margin profile of ~13%,\u201d Nirmal Bang said in the report.