Advit Jewels share price hits 5% lower circuit after bumper debut. Should you buy, sell or hold?

Advit Jewels share price hit the 5% lower circuit on Wednesday, July 1, after making a bumper stock market debut earlier in the day.

Advit Jewels shares listed at ₹187 on the BSE, a premium of 35.50% over the IPO issue price of ₹138 per share. On the NSE, the stock debuted at ₹188.90, reflecting a 36.88% listing gain. Following the listing, the company's market capitalisation stood at ₹814.27 crore.

Despite the strong debut, Advit Jewels share price came under selling pressure and was locked in the 5% lower circuit at ₹179.46 on the NSE and ₹177.65 on the BSE.

However, even after the decline, the stock continued to trade significantly above its IPO price. Advit Jewels share price remained 30.04% higher than the issue price on the NSE and 28.73% above the issue price on the BSE.

Advit Jewels share price - Should you buy, sell or hold?

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., said Advit Jewels delivered a strong stock market debut, listing at ₹188.90 on the NSE and ₹187 on the BSE, translating into gains of more than 35% over its IPO price of ₹138.

She noted that the company has posted robust financial growth, with revenue nearly tripling over the past two years, maintaining EBITDA margins of around 29–30% and delivering a return on net worth (RoNW) of 43.6%, which partly supports its premium valuation.

However, Nyati cautioned that Advit Jewels remains a relatively small and young company with limited geographical diversification, making the stock vulnerable to near-term volatility.

She advised IPO allottees to continue holding the stock from a short- to medium-term perspective, while short-term traders may consider booking partial or full profits after the strong listing gains. For fresh investors, she recommended waiting for one or two quarterly results before taking meaningful exposure to the stock. She also suggested a stop-loss at ₹165 on a closing basis.

Advit Jewels IPO details

The Advit Jewels IPO witnessed overwhelming investor demand, with the issue being subscribed 212.63 times on the final day of bidding last week, reflecting strong interest across all investor categories.

The ₹165.16-crore public issue was offered at a price band of ₹130-138 per share and comprised entirely a fresh issue of 1.20 crore equity shares, with no offer-for-sale (OFS) component.

The company plans to utilise the IPO proceeds primarily towards repaying borrowings worth ₹65 crore, meeting working capital requirements of ₹65 crore, and general corporate purposes.

Advit Jewels is engaged in the manufacture and sale of traditional and contemporary handcrafted fine jewellery, catering to both domestic and international markets.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.