Saraswati Saree Depot share price hits upper circuit after listing at strong premium. Buy, sell or hold?

Stock market today: Saraswati Saree Depot shares price listed on the Indian exchanges at a decent premium. However, Saraswati Saree Depot shares didn't end after a strong debut in the Indian stock market. Saraswati Saree Depot shares opened on the BSE at ₹200 apiece, whereas on the NSE, it opened at ₹194 per share. After opening at over 25 per cent premium against the upper price band of ₹160 per equity share. After this strong debut, Saraswati Saree Depot's share price witnessed strong buying and locked in a 5 per cent upper circuit on both exchanges.

According to stock market experts, Saraswati Saree Depot's share price has been listed in the 'trade-to-trade' category, so intraday trading is not allowed in this stock for the subsequent 10 sessions post-listing. The stock size is smaller, with an upper and lower band of 5 per cent. So, the stock will remain circuit-to-circuit for the subsequent few sessions. However, they said that fair value and PE multiple of the stock signals further upside up to ₹225 apiece. So, share allottees can hold the scrip for ₹225 per share target.

Saraswati Saree Depot share pirce outlook

Advising Saraswati Saree Depot share allottees to hold the scrip for a few more sessions, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, "The stock has listed in the trade-to-trade category, which means intraday trading is not allowed in this scrip for next ten sessions post-listing. As the size of the issue is small, the stock is expected to remain a circuit-to-circuit stock for the next few sessions."

Kejriwal said that the stock has attracted decent trade volume after listing, and its fair value, EPS, and PE multiple suggest further upside up to ₹225 apiece. So, Saraswati Saree Depot shareholders are advised to hold the scrip for a few more sessions.

"Saraswati Saree Depot Limited's strategic initiatives in inventory management, expansion into men's ethnic wear, and a growing e-commerce platform are expected to fuel further growth. With a P/E ratio of 17.9x based on FY24 earnings, the IPO is attractively priced. Investors allotted their shares are advised to hold the position from a medium to long-term perspective," said Akriti Mehrotra, Research Analyst at StoxBox.

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.