Madhusudan Kela picks beaten-down smallcap bets; buys Indiabulls, Simplex Infra in Q4

Synopsis

Ace investor Madhusudan Kela has bought stakes in Indiabulls Limited and Simplex Infrastructures Limited. These companies have seen recent underperformance. Kela's move signals a contrarian investment strategy. His portfolio includes other companies like Kopran and Bombay Dyeing. This selective accumulation in beaten-down stocks is a key highlight.

Ace investor Madhusudan Kela has made fresh investments in underperforming stocks, picking up stakes in Indiabulls Limited and Simplex Infrastructures Limited, signalling a contrarian approach amid recent market trends.

Kela acquired over 5.15 crore shares in Indiabulls, representing a 2.22% stake.

Indiabulls, a smallcap company with a market capitalization of Rs 2,810 crore, operates across real estate and financial services.

The stock ended positively on Friday, surging 11.47% higher to close at Rs 12.15 on the BSE. Despite the sharp uptick, it remains down 18% over the past year and continues to trade below its 200-day moving average, though it has moved above its 50-day average—indicating early signs of recovery.

In a similar move, he bought a 1.21% stake in Simplex Infrastructures. It is a diversified company established in 1924 and delivers projects in several sectors like transport, energy & power, mining, buildings, marine and real estate etc.

Its stock gained 6.12% to close at Rs 192.35 on the NSE, even as it has declined 36% over the past year, significantly underperforming broader markets like the BSE Sensex and Nifty 50, which have delivered modest returns of 5% and 7%, respectively.

Kela's portfolio boasts of 17 stocks with a net worth exceeding Rs 2,188 crore according to Trendlyne. The latest purchases highlight selective accumulation in beaten-down names.

His other bets include Kopran, SG Finserv, Mkventures Capital, Prataap Snacks, Bombay Dyeing, Emkay Global and Repro, Trendlyne data revealed.

Kela's biggest bet is Choice International with a holding value of Rs 1,127 crore. Mkventures Capital and Prataap Snacks are next in line with holding values of Rs 267 crore and Rs 109 crore, respectively.

Also read: Big Whale Ashish Kacholia hikes stakes in smallcap market outperformers SG Finserv, Aeroflex in Q4

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