CMS Info Systems makes tepid debut. Should you hold or accumulate?

CMS Info Systems shares made tepid debut at Indian stock market today. The public issue of the cash management company opened at ₹220 on NSE, near 2 per cent higher from its upper price band of ₹216 per equity share. However, soon after the listing, CMS Info Systems share price appreciated to the tune of ₹250 per share levels helping allottees to maximise their listing gain. According to experts, profit-booking may trigger anytime in the scrip, so, one should book profit at current levels and look for other better option in the market. However, they said that those who are determined to take fresh position in the counter can buy in ₹200 to ₹215 range for ₹275 to ₹300 per share target in next 3 to 6 months.

Speaking on CMS Info Systems share listing; Astha Jain, Senior Research Analyst at Hem Securities said, "There is nothing wrong with the company but the sector it belong looks in overbought condition. So, allottees who applied with short-term time horizon in mind are advised to book profit now whereas those who had long-term vision while applying, are also advised to book partial profit and remain invested with 3 to 6 month target of ₹275 to ₹300 in mind." She said that scrip may come down in next two to three trade sessions as profit-booking is expected to trigger any time.

Santosh Meena, Head of Research at Swastika Investmart Ltd said, "With the government's focus on digital payments, we believe that the availability and use of cash could further decline, which could adversely affect the business activities of the company. The IPO got listed at ₹220.20 against the issue price of ₹216 with a premium of 1.94 per cent. The investors who got the allotment can keep a strict Stop Loss of ₹200 while we recommend investors to invest in the other business with high growth potential."

For fresh investors who want to take fresh position in the counter; Astha Jain of Hem Securities said, "Fresh buyers are advised to look at other better option in chemical and EV segment as they may outperform CMS Info Systems shares over the time. But, if someone is committed to take position in the counter, my suggestion for such high risk investors to buy in the range of ₹200 to ₹215 and book profit in ₹275 to ₹300 per share range. However, they should maintain strict stop loss at ₹170 while taking this position."

Advising buy on dips strategy in regard to CMS Info Systems shares; Sumeet Bagadia, Executive Director at Choice Broking said, "Profit-booking in CMS Info Systems shares can trigger anytime. So, one should accumulate on every big dip in the counter from current levels and hold the counter for ₹275 to ₹300 per share target."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.