Motisons Jewellers share price makes a strong debut; should buy, sell or hold the stock?

Motisons Jewellers share price made a stellar debut on the bourses today. On the NSE, Motisons Jewellers share price today was listed at ₹109 per share, 98.18% higher than the issue price of ₹55. On the BSE, Motisons Jewellers shares were listed at ₹103.90 apiece.

Post a robust listing, Motisons Jewellers share price was locked in 5% lower on NSE. At 11:21 IST, Motisons shares were trading at ₹103.55 on NSE, and ₹102.20 on BSE.

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Also Read: Blockbuster debut: Motisons Jewellers share price opens with 98% premium at ₹109 on NSE

The company has underperformed and is far below the Motisons Jewellers IPO grey martket premium, which was ₹70, according to Arun Kejriwal, founder of Kejriwal Research and Investment Services, even though Motisons Jewellers share price opened increased of ₹54.

Now it has hit the lower circuit of ₹103.55, with a premium of just about ₹48.55. On the BSE, it is trading around ₹100, which means the premium is down to ₹45. If you are holding the shares, you could sell and exit, as this will continue to trade in trade-to-trade segments for the next nine sessions, he advised. A crore shares have been traded across both exchanges as of right now, and the volume is increasing slowly.

Also Read: Motisons Jewellers IPO listing date today. GMP, experts signal over 100% gain

Motisons Jewellers share price outlook 

Mahesh M Ojha, Hensex Securities Pvt Ltd's AVP of Research and Business Development, stated that when Motison Jewellers IPO made its debut, it promised investors amazing returns of 87%. With four stores, the company is a major player in the retail jewellery market in Jaipur, Rajasthan. With more than 3,000,00+ jewellery designs available in a variety of categories, including gold and diamond bracelets, necklaces, earrings, pendants, rings and chains, and silver items, the company offers a diversified product portfolio.

“It has marked consistent growth in its top line with fluctuating earnings. We suggest investor shall book atleast 50% profits on the listing day itself rest can be held for Long term investment,” said Ojha. 

Also Read: Motisons Jewellers IPO sees stellar demand on day 3, issue booked over 159 times so far; GMP drops

Despite launching at a 98% premium, Suman Bannerjee, CIO of US-based hedge fund Hedonova, said that Motisons Jewellers "seems to warrant caution in our view, given its challenges such as underperformance and dependence on third-party suppliers."

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.