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Business News/ Markets / Stock Markets/  Paradeep Phosphates shares make positive debut. Should you buy, sell or hold?
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Paradeep Phosphates shares make positive debut. Should you buy, sell or hold?

Paradeep Phosphates share listing: Bidders who applied for listing gains can book profit at current levels whereas value investors can hold the stock maintaining stop loss at ₹40 levels

Paradeep Phosphates share listing: Value buying levels in the stock comes around ₹32 to ₹36 apiece levels, believe stock market experts.Premium
Paradeep Phosphates share listing: Value buying levels in the stock comes around 32 to 36 apiece levels, believe stock market experts.

Paradeep Phosphates shares hit the Dalal Street today delivering around 4 per cent premium to its allottees. The equity shares of Paradeep Phosphates Limited got admitted at NSE at 43.55 per share whereas it made its debut on NSE at 44 per share levels. According to market experts, those who applied for listing gains can book profit at current levels whereas value investors can hold the stock maintaining stop loss at 40 levels.

Speaking on Paradeep Phosphates share price outlook, Santosh Meena, head of Research at Swastika Investmart said, "Paradeep Phosphates Ltd has debuted at Rs. 44 i.e. 5% above its issue price. The company’s tepid listing can be attributed to the current market sentiments and a lukewarm response from the investors. The company is one of the largest manufacturers of non-urea-based fertilizers and has competitive advantages in terms of backward integration and location. However, the company is operating in a highly regulated industry, with a very high dependency on the agriculture sector; the business is subject to climatic conditions and is cyclical in nature."

Advising allottees to remember the important range of Paradeep Phosphates shares, Ravi Singhal, Vice Chairman at GCL Securities said, "Paradeep Phosphates share price is currently trading in 43 to 52 and those who applied for listing gain can hold the stock maintaining stop loss at 43 and exit on the bounce back from current levels."

Advising positional investors to avoid fresh buying in the counter, Ravi Singhal of GCL Securities said, "No doubt Paradeep Phosphates shares were offered at an attractive valuations but one should enter the scrip keeping value buying only. Value buying levels in the stock comes around 32 to 36 apiece levels. If the stock reaches these levels then one can buy the stock for long term target of 52 maintaining stop loss at 30. In case the value buying levels doesn't arrive then my suggestion to an investor is to look at other options like Deepak Fertilizers."

In 3-day subscription from 17th to 19th May 2022, Paradeep Phosphates IPO (Initial Public Offering) was subscribed 1.75 times whereas its retail portion was subscribed 1.37 times. The non-urea fertilizer maker company has made it clear that it aims to use the proceeds of the fresh issue to partly finance the acquisition of the fertilizer manufacturing facility in Goa, payment of debt and general corporate purposes.

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

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 27 May 2022, 11:01 AM IST
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