Pyramid Technoplast share price hits lower circuit after positive debut. Buy or sell?

Pyramid Technoplast share price listed today on BSE and NSE in special pre-open session and delivered near 12.50 per cent listing gain to the lucky allottees. Pyramid Technoplast share price opened on NSE at ₹187 apiece levels whereas on BSE, it listed at ₹185 apiece levels. However, the stock failed to sustained on higher levels as profit booking triggered within few minutes of stock listing. As a results Pyramid Technoplast shares locked-in 5 per cent lower circuit within few minutes of listing on BSE and NSE.

According to stock market experts, Pyramid Technoplast shares were offered at a little higher than fair value of the stock. However, it managed to deliver listing gain to the allottees due to trend reversal on Dalal Street and exuberance in primary market. They said that only high risk traders should hold the stock with stop loss at ₹165 apiece levels. However, they maintained that scrip is a quality stock and ₹150 apiece levels would be a good supply zone for positional long term investors.

On why Pyramid Technoplast share price hit lower circuit immediately after listing on Indian bourses, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Pyramid Technoplast shares were offered at slightly higher price than the fair value of the stock. However, trend reversal on Dalal Street and bullish sentiment in the primary market helped it list at double digit premium. But, after listing of stock, fundamentals are bound to come into play and current profit booking has to be seen from this perspective."

Pyramid Technoplast share price target

Speaking on Pyramid Technoplast share listing, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, "Pyramid Technoplast share has debuted as a flat-to-positive listing at Rs. 188 (+13%) 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."

On fundamentals in regard to the newly listed share, Swastika Investmart expert said, "The company faces some risks, such as competition from new entrants, fluctuations in the price of raw materials, and changes in government policies. Additionally, the company has experienced negative cash flow in the past. Nevertheless, the IPO is fairly priced at a P/E of around 16.24x. Investors who applied for listing gains may either choose to exit or hold it with a stop loss at the issue price."

On suggestion to those who missed to get Pyramid Technoplast shares during allotment process, Avinash Gorakshkar of Profitmart Securities said, "Pyramid Technoplast shares' fair value comes around ₹150 to ₹155. If the stock comes down to these levels, then it would be a good supply zone for fresh investors. For those who got Pyramid Technoplast shares during allotment process, they are advised to exit on rise maintaining stop loss at around ₹165 apiece levels."

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.