Ajax Engineering share price made a weak stock market debut on Monday, February 17, as it was listed at ₹575 per share on the NSE, an 8.43% discount to the IPO price of ₹629. On the BSE, it was listed at ₹593 per share, reflecting a 5.7% discount.
Following the poor listing, the stock declined further, falling another 2% from the listing price to ₹566 per share. In light of the weak debut, Prashanth Tapse, Senior VP (Research) at Mehta Equities, advised investors who received allotments to hold the stock, citing the company’s growth prospects in the construction and infrastructure sectors.
Tapse stated that the listing was well below street estimates of a flat debut, given the market turbulence, however, it managed to sail through successfully with strong participation from investors across all categories.
"Despite a weaker opening, we remain optimistic. Given the company’s virtual monopoly in SLCM and the increasing infrastructure development in India, along with rising demand for automated concrete solutions, we believe Ajax is well-positioned to cater to India’s booming construction and infrastructure sector," said Tapse.
Hence, considering the company's strong long-term prospects, Tapse recommends investors to 'HOLD' Ajax Engineering IPO for the long term. He also advised investors looking to accumulate on dips to wait for better entry points at discounted prices in the current market scenario.
About the company
Incorporated in July 1992, Ajax Engineering Limited specialises in manufacturing a diverse range of concrete equipment and services across the value chain. As of September 30, 2024, the company has developed 141 concrete equipment variants and sold over 29,800 units in India over the past decade.
Its design, engineering, and development team comprises 79 full-time employees, representing approximately 15.96 percent of its total workforce. The company operates four manufacturing facilities in Karnataka, located in Obadenahalli, Gowribidanur, and Bashettihalli, with each specializing in different product categories, particularly the Obadenahalli facility.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
