Synopsis:
A sharp market shift tested one of India’s most seasoned investors. Here are the stocks that led to the decline.
Ace investor Madhusudan Kela, celebrated for his sharp eye in identifying emerging businesses, faced a steep markdown in his equity portfolio during the September 2025 quarter. Once seen as one of the most consistent wealth creators in India’s mid-cap space, his holdings endured a sharp correction amid a turbulent market environment. Here’s a detailed look at how his portfolio value tumbled, the stocks behind the fall, and where his current bets now lie.
Steep Drawdown in September Quarter
Latest exchange disclosures show that Kela’s public equity holdings dropped 39 percent in value, sliding from around Rs. 4,073 crore in June 2025 to Rs. 2,494 crore by the end of September 2025. However, a mild rebound in several counters since then has helped recover some losses, with the overall portfolio inching up nearly 12 percent to Rs. 2,786 crore by November 2025.
PortfolioTrajectory
Starting at around Rs. 1,195 crore in December 2023, his portfolio surged almost threefold by June 2024 as investors poured into smaller companies during a broad based rally. The momentum continued through FY25, with his portfolio value touching a record Rs. 4,073 crore in June 2025, a massive 45 percent jump in just one quarter.
But the sharp reversal came soon after, as risk averse investors pulled out of mid-caps, foreign portfolio investors withdrew capital, and global geopolitical tensions spurred volatility. As per the latest corporate shareholding disclosures, Kela currently holds 15 publicly listed stocks worth approximately Rs. 2,784.7 crore.
Stocks That Lead the Slide
The September correction was largely driven by a steep decline in several of his mid and small-cap holdings. Indostar Capital Finance plunged nearly 31 percent quarter-on-quarter amid concerns over credit quality, while Nazara Technologies slipped 22 percent on muted gaming revenues. MK Ventures Capital, one of his concentrated financial bets, declined 18 percent, tracking sector wide weakness, and Windsor Machines dropped 25 percent as demand slowed in the capital goods segment.
Kela’s Core Holdings
Despite the volatility, Kela continues to maintain significant stakes in a few high conviction plays. His top holding remains Choice International, valued at Rs. 1,485.4 crore, representing an 8.9 percent stake. This is followed by MK Ventures Capital at Rs. 392.8 crore (74.4 percent stake), Windsor Machines at Rs. 192.2 crore (7.7 percent), and Nazara Technologies at Rs. 118.2 crore (1.2 percent).
He also initiated a fresh position in Prataap Snacks during the September quarter, purchasing about 11 lakh shares worth Rs. 122.3 crore, taking his total holding to 4.6 percent. The move marks his re-entry into the packaged-foods space, signalling a diversified approach even amid market turbulence.
Written by Manan Gangwar
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