Azad Engineering’s Stellar Debut on Stock Exchanges with Over 37% Premium

Azad Engineering's Stellar Debut on Stock Exchanges with Over 37% Premium

VoM News Desk | December 28, 2023 | 11:51 AM IST | Breaking News | Follow on Google News

Azad Engineering’s Stellar Debut on Stock Exchanges with Over 37% Premium/MINT

Azad Engineering’s Stellar Debut on Stock Exchanges with Over 37% Premium

Azad Engineering saw a remarkable debut on both BSE and NSE, opening at a significant premium of more than 37%. The share price began at ₹710 on BSE and ₹720 on NSE. Following initial profit booking, it momentarily dropped to an intraday low of ₹701 on both exchanges but rebounded swiftly, reaching an intraday high of ₹727 on NSE and ₹727.50 on BSE.

Market experts anticipate a promising outlook for Azad Engineering, foreseeing potential higher valuation multiples due to the company’s critical life-saving product offerings, which are expected to sustain strong demand. Long-term investors are encouraged to retain their positions for potential further upside, while short-term investors, already benefiting from around a 40% return, might consider booking profits and exiting.

Prashant Tapse, Senior VP — Research at Mehta Equities, highlighted the company’s niche product profile, emphasizing the critical nature of its components, significant export revenue (~80%), and superior margin profile as factors contributing to an expected higher valuation multiple. Consequently, he recommended allotted investors to “HOLD” the stock for the long term. Non-allottees are advised to observe and consider accumulating on any potential post-listing dips, targeting a long-term holding period of 3-5 years.

Arun Kejriwal, Founder at Kejriwal Research and Investment Services, suggested that those aiming for short-term gains may consider booking profits now, having already realized substantial returns of around 40%. However, for individuals inclined to hold onto the stock, he recommended setting a stop-loss below today’s low of ₹701 per share. Additionally, he foresees possible near-term upward movement if the stock breaches today’s high of ₹727 per share.

VoM News Desk

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