Divgi TorqTransfer systems share price had a positive opening on Dalal Street despite weak sentiments. However, bulls fail to held the stock higher and profit booking immediately after Divgi TorqTransfer systems share listing dragged the stock to its intraday low of ₹557.20 apiece on BSE. But, after after hitting its intraday low, Divgi TorqTransfer Systems share witnessed some relief rally and surged to the tune of ₹590 apiece after around one and half hour of its listing.
According to stock market experts, Divgi TorqTransfer systems shares would become bullish only when it sustains above ₹640 apiece levels. Till then it would remain an idea 'sell on rise' stock on Dalal Street. They advised Divgi TorqTransfer systems IPO allottees to hold the stock maintaining stop loss at ₹550 and exit when the stock comes above ₹600 levels. For those who missed to get Divgi TorqTransfer systems shares via allotment process, experts advised them to wait till the stock is below ₹640. They advised fresh entry only above ₹640 for ₹750 target in near one quarter time.
Speaking on Divgi TorqTransfer systems IPO listing, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, "Divgi TorqTransfer Systems share price has debuted on flat-to-positive note at ₹620 (+5%) to its issue price, because of equity market conditions. The issue had also received a good response from investors on both the institutional and retail sides."
Swastika Investmart expert maintained that the company is dealing in a niche segment with high entry barriers. Divgi TTS has the advantage of an experienced management team. The company had also demonstrated consistent financial performance over the years. However, the majority of its business is dependent on a few customers, and geopolitical risk and competition from global players are some concerns. The issue had a P/E valuation of 35x, which was fairly priced.
On Divgi TorqTransfer systems share price outlook, Ravi Singhal, CEO at GCL Broking said, "The stock has slumped after positive listing that signals uncertainty in the minds of bulls. So, I am expecting selling on every big rise in the scrip and hence won't advise fresh buying in the scrip at current levels. those allottees who got Divgi TorqTransfer systems shares through allotment process, they can maintain stop loss at ₹550 and exit once the stock comes around or above ₹600 apiece levels."
Divgi TorqTransfer Systems shares made their positive market debut on Tuesday with the stock listing at ₹620 apiece on the NSE, a premium of more than 5 per cent as compared to its IPO issue price of ₹590 per share. On the BSE, Divgi TorqTransfer shares started trading at ₹600 a piece.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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