Archive · 4 Aug 2026
Madhusudan Kela’s 2 turnaround bets: Which one looks stronger?
Madhusudan Kela is a smart investor who buys companies that are doing badly and then helps them get better.
He has two companies that are doing better now.
One is a lender called SG Finserve that gives money to a big group of companies.
The other is a software company called IRIS RegTech that helps banks follow rules.
Both companies’ stocks have gone up a lot.
SG Finserve’s profits are real but the price is high for the return it gives.
IRIS RegTech’s profits look big because of a one‑time sale, but its regular earnings are smaller.
The article says we should watch how each company does in the next year to see which one is a better investment.
SG Finserve grew from negligible profits to Rs 128 crore net profit in FY26, driven by APL Apollo ecosystem lending.
IRIS RegTech turned from losses to Rs 127 crore net profit in FY26, largely due to a one‑off Rs 136 crore asset sale.
Both companies’ share prices surged: SG Finserve up 17,400% and IRIS RegTech about 100% since 2021.
SG Finserve trades at a 29x PE on a modest 10% ROE, raising price‑to‑return concerns; IRIS RegTech trades at 4x PE but real earnings are much lower after stripping the one‑off gain.
The analysis warns that SG Finserve’s growth relies on a single ecosystem and modest ROE, while IRIS RegTech’s core margins are lumpy and promoter stake is low.
- Who
- Madhusudan Kela and his holdings in SG Finserve and IRIS RegTech
- What
- Analysis of two turnaround bets in his portfolio
- When
- 3rd August 2026
- Where
- India
- Why
- To evaluate which turnaround bet is stronger and assess investment prospects
- SG Finserve market cap
- Rs 4,616 crore
- SG Finserve PE
- 29x
- SG Finserve ROE
- 10%
- IRIS RegTech PE
- 4x
- IRIS RegTech ROCE
- 11%
- IRIS RegTech one‑off gain
- Rs 136 crore