electronics mart share price today: Electronics Mart India: Should you book profits after stellar debut or hold it for long-run?

Electronics Mart India shares made a stellar debut on Monday but saw some profit booking amid wild swings in Dalal Street.

The company’s shares were listed at a premium of 53 per cent on the National Stock Exchange (NSE) at Rs.90 above the issue price of Rs.59. On the BSE, the scrip debuted at 89.40 rupees on the BSE, a premium of almost 52 per cent.

After the listing, the counter failed to post another uptrend as investors who received the shares during the IPO offering posted gains after a sharp fall in prices.

Electronics Mart India shares jumped to Rs 91 before falling to Rs 83.25 on BSE, their daily lows through 11.45am. Market analysts remain divided on any immediate move on the listing price. They unanimously propose to avoid re-entry on the counter.

Pravesh Gour, Senior Technical Analyst,

advised investors to lock in price gains and said only aggressive investors should consider a long-term commitment to the company.

Those who have applied for price gains can maintain a stop loss of Rs 77, he said, adding that the company operates in a highly competitive market with a limited market share.

Electronics Mart India raised Rs 755 crore through its first sale of shares which remained open for subscription between 4th and 7th October. The company sold its shares in the range of Rs 56-59 apiece.

The issue was subscribed a total of 71.93 times, with quota for QIB investors being subscribed a whopping 169.54 times. Shares for HNI and retailers were subscribed 63.59 times and 19.72 times, respectively.

Astha Jain, senior research analyst at Hem Securities, suggested investors should book 25-50 percent of profits into the company and hold the remaining stake for the longer term.

“The company has delivered expected returns, but take some money off the table,” she said. “At the current level, new entrants should be avoided.”

Research Analyst Arafat Saiyed agrees.

According to Securities, investors can book half of the gains and keep the remaining portion for further upside.

“After an excellent debut on the exchanges, a new entry is not advisable. One should wait for a decent correction to enter the meter,” he suggested.

Electronics Mart India was established in 1980 and is the fourth largest consumer durables and electronics retailer in India with a leading position in South India, particularly in the states of Telangana and Andhra Pradesh.

Electronics Mart India operates and manages 112 stores covering 1.12 million square feet of retail space in 36 cities.

Elara Capital’s Harshit Kapadia has suggested investors hold the stock for longer. “One can hold stock as there is still more steam in the counter, but a new entry must be avoided.”

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times)

https://economictimes.indiatimes.com/markets/stocks/news/electronics-mart-india-should-you-book-profits-after-stellar-debut-or-hold-it-for-long-run/articleshow/94913948.cms electronics mart share price today: Electronics Mart India: Should you book profits after stellar debut or hold it for long-run?

Russell Falcon

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