Indo Farm Equipment share price: Missing the market estimates, Indo Farm Equipment shares got listed on the BSE and the NSE at around 19 per cent premium. However, the newly-listed stock witnessed strong buying post-listing and ascended around 10 per cent within a few minutes of the stock market debut.
Indo Farm Equipment share price opened on the NSE at ₹256 apiece, whereas, on the BSE, it opened at ₹258.40 per share. After listing on the Indian bourses, Indo Farm Equipment’s share price ascended to an intraday high of ₹287 per share on the NSE and ₹286.90 on the BSE.
According to stock market experts, Indo Farm Equipment’s share price has been listed below the market estimates due to the fear of reported HMPV virus cases in India. They said newly-listed stock witnessed strong buying following a rally in the Indian stock market despite concerns about the HMPV virus.
Market experts noted that Indo Farm Equipment’s share price is trading above its weighted average, which signals further upside movement. They advised Indo Farm Equipment shareholders to hold the scrip, maintaining a stop loss below ₹275.
Indo Farm Equipment share price outlook
Speaking on the outlook of Indo Farm Equipment shares, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The stock has listed below market estimates as the market was expecting around 40 per cent listing gain for the lucky allottees. However, due to the sharp selling in the Indian stock market on Monday due to fears of the HMPV virus, Indo Farm Equipment shares are listed below the market estimates. However, one must not forget that the issue was offered at high valuations. So, those who have applied for the listing gain should book profit and exit. High-risk investors can hold the scrip while maintaining a stop loss below the weighted average of ₹275 apiece.”
“Indo Farm plans to expand its dealer network from 175 to 500 in five years, boosting sales. Financially, it reported a PAT of Rs. 155.95 million in FY24, with consistent EBITDA margins of around 16%. While the issue is priced at a P/E ratio of 51.8x over its upper price band based on FY24 earnings, given its strong growth prospects and favourable industry trends, we recommend that investors who have been allotted shares consider holding their positions from a medium to long-term perspective,” said Palak Devadiga, Research Analyst at StoxBox.
Advising investors to hold the scrip for a long time, Prashant Thapse, Senior VP — of Research at Mehta Equities, said, “Considering renewed market sentiments, we recommend conservative allotted investors can think of booking profits above our expectations. Meanwhile, long-term investors should consider HOLD IT FOR the LONG TERM despite knowing short-term volatility post listing & risk in the markets. For non-allotted investors, we advise accumulating if we get dips post listing due to profit booking attempts.”
HMPV virus cases in India
Indian authorities confirmed the detection of several human metapneumovirus cases on Monday amid growing concern about the respiratory virus. Two cases were reported from Bengaluru in Karnataka, while a third tested positive after being hospitalised in Gujarat. The development comes even as China and other countries battle a major viral fever and pneumonia outbreak.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
