Madhusudan Kela-backed MV Electrosystems shares more than double from IPO price in just 2 months. Should you buy?

MV Electrosystems shares have surged significantly since their IPO, with the stock price more than doubling in just two months. This sharp rise has boosted the stake value of its prominent investor, Madhusudan Kela, to over Rs 100 crore. However, this rally comes with a caveat, as the company reported a net loss for the fiscal year ending March 2025. Additionally, there are concerns regarding a decline in revenue for the upcoming fiscal year 2026.

For investors, this creates a classic dilemma of valuation versus fundamentals. The high-profile backing of a seasoned investor is a positive sentiment driver, yet the company's current financial health and lack of profitability are red flags. Investors should closely monitor the company's quarterly results to see if the recent price surge is supported by actual business growth or if it is purely driven by market hype.