**Market Brief: Madhusudan Kela Portfolio Update (Jan 2026)** **Overview: Sharp Valuation Erosion** Renowned investor Madhusudan Kela’s public portfolio has witnessed a significant correction over the last seven months. Between July 2025 and late January 2026, the estimated value of his disclosed holdings fell from approximately **Rs 4,072 crore** to **Rs 2,219 crore**, marking a decline of nearly **45%**. This erosion was driven by deep cuts in nine key holdings, which corrected between **15%** and **45%** amidst broader market volatility. Despite the red ink, Kela executed a strategic entry during the December 2025 quarter (Q3 FY26), adding a financial services player to his roster. **The "Red" List: Major Drags on Performance** The volatility was most acute in small and mid-cap constituents of the portfolio. The flagship holding, **MKVentures Capital**, was the hardest hit, plummeting **44%** from Rs 1,739 to Rs 974. As of January 30, Kela held a **74.36%** stake in the company, valued at roughly **Rs 278 crore**. Other significant underperformers included: * **Indostar Capital Finance:** Crashed **42%** to Rs 207. * **Windsor Machines:** Corrected **34%** to Rs 261. * **Kopran:** Slid **32%** to Rs 128. * **Bombay Dyeing:** Dropped **31%** to Rs 115. The selling pressure extended to fintech and tech-enabled services. **Niyogin Fintech** lost **27%**, while **Repro India** and **Unicommerce eSolutions** shed **25%** and **17%** respectively. **SG Finserve** also faced headwinds, declining **18%** to Rs 334. **New Entry: Q3 FY26 Addition** Amidst the correction, Kela signaled conviction in the financial services sector. He acquired a **1.12%** stake in **Emkay Global Financial Services** during the October–December 2025 period. Unlike the broader portfolio trend, Emkay Global defied the negative sentiment, rising **11%** over the same seven-month period to trade around **Rs 250**. The stake is currently valued at approximately **Rs 7 crore**. **Bright Spots: Resilience in Volatility** Not all holdings faced downward pressure. Two stocks managed to post gains between July 2025 and January 2026: **Choice International** This stock remained a portfolio heavyweight. It gained **9%**, moving from Rs 701 to Rs 765. Kela’s **7.21%** stake here is substantial, valued at approximately **Rs 1,228 crore**—anchoring nearly half the portfolio's total current value. **Rashi Peripherals** The tech distributor climbed **17%**, advancing to **Rs 359**. The holding is valued at roughly **Rs 58 crore**. **Summary of Holdings (As of Jan 30, 2026)** The analysis covers 15 stocks where shareholding exceeds 1%. While 10 of these delivered negative returns in the monitored period, the concentration of value in Choice International provided a buffer against the steeper percentage drops seen in smaller allocations like MKVentures and Indostar.