Madhusudan Kela Bets on This SmallCap Multibagger Despite 34% Fall; Here’s Why

madhusudan-kela

Synopsis: Madhusudan Kela invested Rs. 240 crore in Windsor Machines after its 2,000% surge, attracted by the cleaning equipment manufacturer’s turnaround story and expanding market opportunities.

A small-cap manufacturer of cleaning equipment and floor care solutions has caught the eye of renowned investor Madhu Kela. Despite already delivering an exceptional 2,000% return over four years at its peak in 2024, now the returns have gone down a bit to 1,330% as of 2025, the stock continues to attract marquee investors in 2025. This article explores why this multibagger small-cap remains firmly on their radar.

Windsor Machines Limited‘s stock, with a market capitalisation of Rs. 2,435 crores, fell to Rs. 275.45, hitting a high of low to 1.92 percent from its previous closing price of Rs. 280.85. However, the stock over the past year has given a negative return of 34.5 percent.

Madhusudan Kela, popularly known as Madhu Kela, is a seasoned Indian investor and businessman hailing from Kurud, Chhattisgarh, whose three-decade career in the capital markets has cemented his status as one of the country’s top stock pickers

He founded MK Ventures Capital and the boutique investment firm Invexa Capital, focusing on diversified, long-term wealth creation across sectors while advising high-net-worth individuals and global institutions on Indian opportunities. Demonstrating his ongoing acumen in 2025, Kela’s holdings include a notable 7.7% stake in Windsor Machines acquired since March, valued at approximately Rs. 240 crore, Let’s look into why he choose indsor Machines.

Possible Reasons For Investment

Industry Outlook: The company operates in India’s rapidly expanding plastics processing machinery sector, which is projected to reach Rs 10 lakh crore by 2027-2028. This growth is driven by escalating demand across three key end-user segments packaging, automotive manufacturing, and infrastructure development positioning the company to capitalize on strong structural tailwinds.

Financial Turnaround Materializing: The company demonstrated a clear operational turnaround with Q3 FY25 profit reaching Rs. 41.7 crore at the time of initial investment. This marked improvement in profitability signals management’s ability to execute on its business strategy and drive bottom-line growth.

R&D: The company has made significant strides in product development, launching India’s largest domestically manufactured high-tonnage injection molding machine during FY24-25. This technological breakthrough underscores its R&D capabilities and positions it as a leader in indigenous manufacturing of heavy machinery, reducing dependence on imports.

Strategic Vertical Integration: The company completed a 100% acquisition of Global CNC Private Limited, transforming it into a wholly-owned subsidiary. This strategic move adds critical precision engineering capabilities to the company’s portfolio, enabling greater control over the value chain and enhanced product offerings.

Promoter Change: A significant ownership transition occurred in FY25 when Plutus Investments acquired 35 million equity shares from Castle Equipments in June 2024. Following regulatory approvals, Plutus Investments became the sole promoter effective September 10, 2024, bringing fresh strategic direction and capital commitment to the business.

Q2 Financial Highlights 

The company reported revenue of Rs. 136.64 crore in Q2FY26, marking a robust 130% YoY growth from Rs. 59.41 crore in Q2FY25. On a sequential basis, revenue grew 20.6% QoQ from Rs. 113.34 crore in Q1FY26, demonstrating strong momentum in business operations. The consistent revenue expansion across both quarters highlights improved demand and operational scale.

The company achieved a remarkable turnaround in profitability, posting a net profit of Rs. 4.29 crore in Q2FY26 compared to a loss of Rs. 36.68 crore in Q2FY25. The sequential performance also improved significantly, with the company swinging to profit from a Rs. 10.54 crore loss in Q1FY26. This represents better cost management and operational efficiency alongside the revenue surge.

Written By Fazal Ul Vahab C H

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