Madhusudan Kela stands out as someone the investor community looks up to with decades of experience. Known for his bold and contrarian strategies, Kela has earned a spot in our list of Warren Buffetts of India. He is followed by many for his knack for capitalizing on opportunities others overlook. He usually invests in fundamentally strong companies undervalued by the market, patiently holding them through volatility until their true potential is realized.
Currently, two stocks in Kela’s handpicked portfolio offer a view into his contrarian strategy. These companies have seen sharp declines, with share prices dropping over 50% from their all-time high prices, giving air to the debate if they are undervalued gems or risky traps.
Whatever it is, given that Kela is still holding them despite the fall, warrants a deep dive into the stocks to see if we can find out what he sees in these 2 stocks that average investors don’t.
Kopran Ltd
Incorporated in 1958, Kopran Ltd is a fully integrated pharmaceutical company that manufactures and supplies high-quality formulations and active pharmaceutical ingredients globally.
With a market cap of Rs 885 cr, the company undertakes development, manufacturing, and sale of diverse Active Pharmaceutical Ingredients and Advanced Intermediates. It is one of the leaders in Atenolol.
Madhusudan Kela has been holding a stake in Kopran Ltd since March 2023 as per Trendlyne.com. Currently he holds 1.5% stake in the company worth Rs 13 cr.
The company’s sales have grown from Rs 360 cr in FY20 to Rs 630 cr in FY25, which is a compound growth rate of 12% in the last 5 years.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for Kopran was Rs 47 cr in FY20. And for the FY25, it has grown to Rs 73 cr, logging in a compound growth rate of almost 10%.
The net profits grew from Rs 21 cr in FY20 to Rs 39 cr in FY25, which is again a compound growth of 12%.
The share price of Kopran Ltd was about Rs 28 in May 2020, and as market closing on 28th May 2025 it was Rs 183, which is a 554% jump in just 5 years. Just 1 lac in the company 5 years ago, it would today be over Rs 6.5 lacs.
At the current price, the stock is trading at a discount of a little over 50% from its all-time high of Rs 370.
The company’s share is trading at a current PE of 23x, while industry median is 30x. The 10-year median PE for Kopran is 15x, while the industry median for the same period is a 25x.
The company has maintained a strong dividend payout of 40% and has also seen a jump in FII (Foreign Institutional Investor) holding in the recent quarter from 0.86% to 1.11%.
IRIS Business Services Ltd
Incorporated in 2000, IRIS Business Services Ltd offers Regtech solutions to regulators and enterprises.
With a market cap of Rs 571 cr, IRIS is a RegTech SaaS company that helps enterprises, business registers, regulators, central banks, stock exchanges, BFSI, and other organizations meet their regulatory compliance requirements through technology-driven solutions like Artificial Intelligence, Machine Learning, and Robotic Process Automation.
Madhusudan Kela has held a stake in the company since March 2019 as per data on Trendlyne.com. Currently he holds 5.2% stake in the company worth Rs 29.5 cr.
The company’s sales jumped from Rs 51 cr in FY20 to Rs 126 cr in FY25, logging in a compound growth of 20% in the last 5 years.
EBITDA for IRIS Business Services has jumped from Rs 8 cr in FY20 to Rs 19 cr in FY25, which is a compound growth of 19%.
As for the net profits, IRIS wasn’t making any in FY20, but as of FY25 the company has reported profits of Rs 13 cr.
The share price of IRIS Business Services Ltd has grown from its five years old price of Rs 12 in May 2020, to its current price of Rs 274 (as of closing on 28th May 2025), which is a jump of 2,183%.
Rs 1 lac invested in the stock 5 years ago would be today almost around Rs 23 lacs.
At the current price of Rs 274, the company’s share is trading at a discount of almost 53% from its all-time high of Rs 577.
The share is trading at a PE of 48x, while the industry median is 31x. The 10-year median PE of IRIS is 53x while industry median for the same period is27x.
The company is almost debt free and has seen a jump in FII holding in the last quarter from 1% to 1.42%.
To Buy or Not to Buy?
Madhusudan Kela is known for his contrarian picks and the two companies we looked at today are a classic example of the same. Despite the stock prices falling over 50% from their all-time high price, Kela still hasn’t lost his trust in them.
Both stocks face sector-specific challenges like regulatory pressures in pharmaceuticals and technology adoption cycles in RegTech. These could make recovery timelines longer. However, the secret lies in assessing whether these temporary changes justify the big price corrections or they are just overreactions by a fearful market.
For investors considering these picks, the decision ultimately depends one’s risk appetite and investment horizon. The one’s seeking instant gratification may want to look elsewhere to find better opportunities. Other might want to add these stocks to their watchlist and keep a vigilant eye on them.
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.