Orient Technologies share price jumps 5% after bumper listing. Should you buy, sell or hold?

Orient Technologies stock made a remarkable debut today, listing at ₹288 per share on the NSE, a 40% premium over its issue price of ₹206. On the BSE, the stock debuted at ₹290, reflecting a 40.78% premium.

The stock, after the bumper listing, extended gains to reach ₹302 apiece, a 5% surge from its listing price of ₹288 apiece. Retail investors who were allotted shares witnessed their investments grow by nearly 47% in a day.

More gains ahead?

Shivani Nyati, Head of Wealth at Swastika Investmart, said that Orient Technologies, a seasoned IT solutions provider, made a strong market debut, listing at ₹302 per share—an impressive 46.8% gain over its issue price of ₹206. This highlights the positive investor sentiment toward the company.

She noted that the substantial oversubscription and impressive listing gains reflect strong investor confidence in Orient Technologies' future. The company's long track record and diverse clientele, along with consistent financial growth and a healthy balance sheet, strengthen its market position.

According to Shivani, the listing of Orient Technologies is a testament to its strong fundamentals and positive market outlook. However, she cautioned investors to remain vigilant about potential challenges, such as industry competition and reliance on key clients. She recommended that investors hold onto their shares, setting a stop-loss at ₹270.

Hashim Yacoobali, Director of South Gujarat Shares and Sharebrokers, pointed out that the stock’s upward trajectory has established a resistance zone between ₹307 and ₹331, while the support zone lies between ₹284 and ₹269.

He emphasized that a bullish trend is unlikely to break this support zone and anticipates that the area between ₹284 and ₹269 will experience further upward momentum in the coming days, targeting the range of ₹388 to ₹412.

About Orient Technologies

Orient Technologies is an information technology (IT) solutions provider headquartered in Mumbai, Maharashtra, incorporated in 1997. It offers a wide-ranging and diversified bouquet of product and service offerings and classifies its business into three verticals: IT infrastructure, ITeS, and cloud and data management services.

Its products and services in IT infrastructure comprise data center solutions and end-user computing. While the IT Infrastructure segment is the business segment with the longest operational track record and, in Fiscal 2023, Fiscal 2022, and Fiscal 2021, its largest revenue-generating segment, it has broad-based its offerings significantly even within this segment and continually added new products, according to the company's DRHP report. 

The company has recently ventured into ‘Device as a Service (DaaS)’. Under DaaS, it provides desktops, laptops, tablets, printers, scanners, smartphones, and servers, bundled with software, along with managed services on a ‘pay-per-use’ model, i.e., on a subscription basis.

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.