eMudhra share price: Should you buy, sell or hold after positive debut?

eMudhra shares made a positive debut on the Dalal Street today as it listed at ₹271 per share on BSE, giving near 6 per cent premium to the lucky allottees. However, after listing, eMudhra shares retraced from its intraday high of ₹279 on BSE and made today's low of ₹256 per share. It listed at at ₹270 per equity share on NSE. 

According to stock market experts, those who applied for listing gain can hold the counter with stop loss at ₹240 and book profit after bounce back from today's lows. However, for those who have a long term view can hold the stock for one year target of ₹350 levels. They advised fresh investors to take one year long position at around ₹255 to ₹260 for a target price ₹350 apiece levels.

Speaking on eMudhra share listing, Santosh Meena, Head of Research, Swastika Investmart Ltd said, "eMudhra Ltd. has debuted at Rs. 271.45 i.e. 6% above its issue price. The company’s tepid yet positive listing can be attributed to current market conditions, good prospects, and reasonably good responses from retail investors. eMudhra is India's largest licensed Certifying Authority and the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe. Further, eMudhra is the only Indian company to be accredited to Webtrust which makes their digital signature certificates directly recognized by browsers across the world allowing them to issue digital signature certificates in many countries. The growing demand for data privacy, data protection, and digital transformation will help the company grow substantially in the medium to long term."

Advising short term investors to hold the counter, Anuj Gupta, Vice President — Research at IIFL Securities said, "Those who applied for listing premium can hold the counter maintaining stop loss at ₹240 and book profit from rebound from today's lows. Long term investors can also hold the stock with same stop loss for one year target of ₹350 levels."

For those who want to buy the scrip now, Anuj Gupta of IIFL Securities said, "Fresh investors can buy the scrip around ₹255 to ₹260 for one year target of ₹350. They should also maintain a stop loss at ₹240 on closing basis."

The licensed certifying authority has already made it clear that proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data center proposed to be set up in India and overseas locations, develop products, investment in eMudhra INC and for general corporate purposes. It covers around 38 per cent market share in digital certificates market in India.

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