Madhusudan Kela’s Portfolio and Holdings

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Introduction:

Success in the stock market in India isn’t simply about luck or randomly picked stock advice; it’s a result of well-honed skills and a strategic approach. Seasoned investors like Madhusudan Kela have honed these skills through years of experience, developing unique investment philosophies that have propelled their portfolios to the forefront of the market. In this article, we’ll dissect his investment philosophy and analyze his portfolio composition to gain valuable insights into sustainable investment strategy and know what is a stock portfolio. 

About Madhusudan Kela

Madhusudan Kela, from Kurud, Chhattisgarh, is a notable Indian investor and businessman. He completed his Master’s in Management Studies in 1991 from K. J. Somaiya Institute of Management Studies and Research (SIMSR) in Mumbai. He began his career in equity research at CIFCO and Sharekhan. 

In 1994, he joined Motilal Oswal to establish its institutional desk, moved to UBS in 1996, and then to Reliance Mutual Fund. From June 2004 to September 2010, he led equity investments at Reliance Mutual Fund, driving it to become India’s first fund with an Asset Under Management of Rs.1 lakh crore. Under his leadership, the Reliance Growth Fund achieved a 32% CAGR (Compound Annual Growth Rate) from 2004 to 2010.

After leaving Reliance in 2017, Madhusudan Kela founded MK Ventures in January 2018 and continued as its Managing Director. He is also a respected member of the Venture Capital Investment Committee (VCIC) of the Small Industries Development Bank of India (SIDBI) for the ‘Fund of Funds for Start-ups (FFS).’ Kela also holds positions in industry bodies like FICCI and CII and is a Founder and Trustee at Plaksha University, highlighting his dedication to education and philanthropy.  Apart from these, Madhusudan Kela is also involved in social causes and serves as a Trustee at the Konark Cancer Foundation. 

His insights are highly sought after by top business news channels in India, such as CNBC TV18, ET Now, Bloomberg, BTVI, CNBC Awaaz, and Zee Business. He frequently participates in investment forums and major conferences organized by FICCI, CII, ICAI, and other institutions. Recognized for his contributions, Kela has received accolades, including the Best Equity Fund Manager award from the Prime Minister of India. His strategic insights are valued by leading industrial houses in India.

Madhusudan Kela’s Net Worth:

As of the quarter ending June 2024, Madhusudan Kela’s net worth was Rs.2155.4 Cr., 10.16% less than the March 2024 net worth of Rs.2399.2 Cr. However, his net worth has shown a consistent upward trend since the quarter ending in June 2022, when his net worth was Rs.641.4 Cr. 

Madhusudan Kela Portfolio:

As of the quarter ending June 2024, the portfolio of Madhusudan Kela holds the following stocks-

Company	1-year % Return (June 2024 quarter)	March 2024(% Holdings)	June 2024(% Holdings)	Holding Value (Rs.Cr.)
Choice International Ltd.	112.78	12.04	Filing Due	895.2
Iris Business Services Ltd.	177.41	5.54	5.39	29.05
MKVentures Capital Ltd.	74.36	74.36	74.36	602.11
Sangam (India) Ltd.	49.49	4.86	4.86	98.67
Bombay Dyeing And Manufacturing Company Ltd.	82.50	1.65	1.65	77.3
Kopran Ltd.	29.78	1.04	1.04	11.73
Indostar Capital Finance Ltd.	50.69	2.48	2.48	83.78
Repro India Ltd.	13.67	3.32	Filing Due	29.75
Niyogin Fintech Ltd.	17.08	5.28	5.28	34.61
Samhi Hotels Ltd.	24.83	1.72	Filing Due	66.08
Transformers & Rectifiers (India) Ltd.	809.50	3.91	–	0
Rashi Peripherals Ltd.	–	2.44	2.44	65.29

Of the stocks, Madhu Kela’s latest buy is Niyogin Finance Limited, which resulted in a 5.28% stake in the company. 

Apart from stocks, Madhusudan Kela is also an angel investor who has invested in various small companies. The companies include- 

Companies	Investment Date
S3v Vascular Technologies	March 2024
Waaree Energies	August 2023
Servify	February 2021
Kapiva	January 2019
Akasa Air (Seed capital)	August 2021

In addition, his portfolio includes a $167M investment in Shyam Metallics. He invested in this company pre-IPO and exited the position in June 2021. 

Madhusudan Kela Portfolio Analysis:

• The angel investment portfolio mainly concentrates on financial services and travel and hospitality companies.
• Madhusudan Kela strategically invested in small and mid-cap companies with substantial growth potential. Notable investments included BEML, Kirloskar Brothers, and Jaiprakash Associates. These companies emerged as multi-baggers, offering promising valuations and significant returns.
• As of December 2023 quarter details, the current portfolio holds nearly 51.51% small cap and 48.49% micro-cap stocks. 
• In 2009, Kela shifted his focus to the pharmaceutical sector. He made disproportionately large bets, convinced of the sector’s medium-term prospects. Despite macroeconomic challenges, Kela saw a meaningful opportunity in pharmaceuticals and capitalized on it.
• The sectoral analysis of the portfolio shows the following bifurcation-

Madhusudan Kela’s Investment Philosophy:

Madhusudan Kela and Madhuri Madhusudan Kela’s portfolio highlights the importance of emotional discipline in long-term investing. You need to stay level-headed and rational amid market fluctuations. While his investment philosophy isn’t easily defined, controlling emotions and learning from various sources is key. Inspired by investors like Rakesh Jhunjhunwala and George Soros, as well as insights from Peter Bregman’s “18 Minutes,” Kela values continuous learning and adaptation in the dynamic investing world.

Kela advocates for a well-defined asset allocation plan designed for the long term. He sees volatility as an opportunity, encouraging you to use market fluctuations to invest in fundamentally strong companies. Additionally, he advises on education on what is compounding and entrusting investments to skilled asset managers or registered financial consulting firms specializing in the complexities of financial markets, highlighting the importance of professional expertise and diligence in wealth management. He also often highlighted how important it is to measure portfolio performance regularly.  

Conclusion:

Madhusudan Kela is a renowned investor in Indian capital markets with around three decades of experience in both sell-side and buy-side investments. His journey is a testament to his sharp financial skills and talent for spotting opportunities, building strong investment teams, and adapting to market changes. Madhu Kela’s story is truly inspiring, showing how passion, resilience, and constant learning can lead to remarkable success in investing. 

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