Enviro Infra Engineers share price dips after listing at a robust premium. Buy, sell or hold?

Stock market today: After making a stellar debut in the Indian stock market, Enviro Infra Engineers' share price came under the sell-off stress after the profit-booking trigger. Enviro Infra Engineers' share price is listed on the BSE at ₹218 apiece, whereas, on the NSE, it is listed at ₹220 per share. However, the newly listed stock soon came under selling pressure and touched an intraday low of ₹206.41 apiece on the NSE and ₹206.40 per share on the BSE. While hitting the intraday low, Enviro Infra Engineers' share price was still at around 40 per cent premium against the issue price of ₹148 per share.

According to stock market experts, Enviro Infra Engineers' share price is trading at a weighted average of ₹220.50 (at 11:35 AM) apiece, which means the stock may show some more downside and the profit-booking trigger is still weighing on the newly-listed stock. So, they advised Enviro Infra Engineers shareholders to maintain a stop loss at ₹200 apiece and hold the scrip irrespective of their time horizon. They added that the company is in the water treatment business with limited challenges and competition. One with a medium to long-term perspective may hold the stock despite a robust debut on Dalal Street.

Enviro Infra Engineers share price outlook

Speaking on the reason for the stellar debut of Enviro Infra Engineers shares, Shivani Nyati, Head of Wealth at Swastika Investment, said, "This outstanding performance was driven by the company's strong fundamentals, strong investor interest (89.9 times subscribed), and the positive sentiment surrounding the water and wastewater treatment sector. The company's focus on sustainable infrastructure and strong project execution track record have contributed to this impressive listing. However, investors should remain cautious and monitor the company's performance closely, considering factors such as project execution risks, regulatory changes, and competition in the sector."

On a suggestion to Enviro Infra Engineers shareholders, Shivani Nyati said, “While the initial listing is promising, long-term success will depend on Enviro Infra's ability to capitalize on its growth opportunities and deliver strong financial performance. But now, investors may hold their position by keeping a stop loss around ₹200.”

Expecting more downside in Enviro Infra Engineers shares post-listing, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “Enviro Infra Engineers share price is trading at a weighted average of ₹220.50 apiece on the NSE. This means the newly listed stock may see more downside. So, those who have this stock in their portfolio can hold the scrip, maintaining a strict stop loss at ₹207, irrespective of their time horizon.”

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 taking any investment decisions.