Shree Tirupati Balajee share price hits upper circuit after positive debut on Dalal Street. Buy, sell or hold?

Stock market today: Disappointing the market estimates, Shree Tirupati Balajee share price listed on the Indian stock market bourses at a premium of around 8.50 per cent during Thursday's dealings. Shree Tirupati Balajee share price today opened on the NSE at ₹90 apiece, whereas it listed on the BSE at ₹92.90 per share. However, the newly-listed stock attracted strong buying interest post-listing and touched an intraday high of ₹94.50 per share on the NSE and ₹97.54 apiece on the BSE. While climbing to this intraday high, Shree Tirupati Balajee's share price touched a 5 per cent upper circuit within a few minutes of stock debut on Dalal Street.

According to stock market experts, those with short-term views can maximize their returns by maintaining a stop loss of ₹91 apiece. They said that the newly-listed stock had been listed in the trade-to-trade category, and chances are high that the stock may hit the upper circuit in the following session, especially on Friday. They advised luck allotted to book profit and exit. However, those with a long-term view suggested holding the scrip as the company reported a revenue CAGR of 10.2%, rising from Rs. 4,442 million in FY22 to Rs. 5,397 million in FY24.

Shree Tirupati Balajee's share price outlook

On the suggestion to share allottees who have a short-term view, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, "Those shareholders who have applied for the public issue keeping listing gain only, can maximize one's return by maintaining a stop loss Re 1 above the lower band on tomorrow. The stock is listed in the T category, which means intraday trading is not allowed in this scrip for the next ten sessions post-listing. So, the stock is expected to trade circuit-to-circuit in the next few sessions. So, maintaining stop loss Re 1 above the lower band may enable the lucky allots to earn an extra five per cent on their money as the stock may touch the upper circuit on Friday."

On the suggestion to the long-term investors, Akriti Mehrotra, Research Analyst, Stoxbox, said, “Shree Tirupati Balajee Agro Trading Co. Ltd. has established itself as a leading player in the FIBC and industrial packaging market, capitalizing on high market demand and a global presence. Despite regulatory changes affecting plastic use, fluctuations in raw material supply, and regional manufacturing concentration, the company has shown consistent financial growth. It reported a revenue CAGR of 10.2%, rising from Rs. 4,442 million in FY22 to ₹5,397 million in FY24. EBITDA margins improved from 7% to 11%, and PAT increased from ₹137 million to ₹361 million.”

"With a current P/E ratio of 14.5x based on FY24 earnings, the IPO is attractively priced. Investors who have been allocated shares are advised to hold them for a medium to long-term perspective," the StoxBox expert concluded.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.