Shares of Hero Motors Ltd, SS Retail Ltd, and Jindal Supreme (India) Ltd have seen remarkable post-listing performance, with their stock prices soaring up to 105% from their respective initial public offering (IPO) prices within three days of debut.
All three companies made their stock market debut on Wednesday, September 23. While Hero Motors initially experienced a weak listing, opening at a 2.26% discount to its IPO price of Rs 84, it quickly recovered. By Friday, the stock surged 20% to hit a day's high of Rs 141.85 on BSE, trading 68.87% above its issue price.
SS Retail, in contrast, enjoyed a robust debut, listing at Rs 639.10 on BSE, a significant 50.73% premium over its IPO price of Rs 424. The stock continued its upward trajectory, climbing 7.11% on Friday to reach a high of Rs 870, thereby delivering 'multibagger' returns with a 105.19% gain over its issue price.
Jindal Supreme also saw a positive market entry, listing at Rs 121.90, which was 31.08% higher than its IPO price of Rs 93. The stock added another 5% on Friday, hitting a high of Rs 141.09 and trading 51.71% above its IPO price.
Expert Insights on Market Debutants
Kranthi Bathini, Equity Strategist at WealthMills Securities, advised investors who participated for listing-day gains to consider booking some profits. For long-term serious investment, Bathini suggested monitoring the companies' financial results for a couple of quarters along with management commentary.
Ravi Singh, Chief Research Officer at Master Capital Services, offered specific outlooks for each company:
- SS Retail: Long-term investors may find the underlying business relevant, citing growth in organised retail, evolving consumer preferences, and the company's expanding retail presence as potential growth drivers. Singh emphasized tracking business execution and sustained revenue and earnings growth over just listing performance.
- Jindal Supreme: Short-term investors should focus on revenue growth, order execution, and profitability amidst business expansion. For long-term investors, capacity expansion, order-book growth, and market presence in steel and related products are key indicators. Upcoming results are expected to provide more clarity on capacity utilization and margin stability.
- Hero Motors: With the electric-drive motor market projected for significant CAGR growth through 2031, fresh investments might await price stability. The company's ability to sustain growth, improve profitability, and generate cash will be crucial for its future outlook.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.