Stock market today: Akums Drugs share price extends gain after positive debut on Dalal Street. Buy, sell or hold?

Stock market today: Shares of Akums Drugs and Pharmaceuticals Limited had a positive listing on the Indian bourses, but the listing gain was below the market estimates. Akums Drugs share price opened on BSE and NSE at ₹725 apiece, delivering around 6.50 percent listing gain to the allottees against its upper price band of ₹679 per equity share. However, after listing below the expected lines of market experts, Akums Drugs share price witnessed strong buying immediately after the share listing. After opening at ₹725 apiece, Akums Drugs share price touched an intraday high of ₹797.45 per share on the BSE whereas it climbed to an intraday high of ₹797.50 apiece on the NSE. While climbing to these intraday highs, Akums Drugs shares extended the listing gains of allottees at around 17.50 percent within a few minutes of the share listing.

According to stock market experts, those who have applied for the listing gain are advised to book higher profits, whereas long-term investors can hold the stock and maximise their early investment benefit.

Akums Drugs share price target

Unveiling investment strategy regarding Akums Drugs shares post-listing, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, said, "We were expecting a listing gain of around 15 percent with an expectation that Akums Drugs share price will list at around ₹780 to ₹800 apiece level. As the stock trades in this range, we suggest short-term investors book profits and exits."

On the suggestion to medium—to long-term investors regarding Akums Drugs shares, Prathamesh Masdekar, Research Analyst at StoxBox, said, "We have a positive view of the company and advise the participants who have been allocated to the issue to hold the shares from a medium—to long-term perspective."

Advising Akums Drugs shareholders to hold the scrip for the medium to long term, Prashanth Tapse, Senior vice president (Research) at Mehta Equities, said, “Even though Akums Drugs' listing was below street expectation, we continue to believe and hold our long-term positive outlook in India's largest CDMO player by revenue, production capacity, and client base. We think the company's comprehensive product offerings, extensive manufacturing capabilities, and strategic presence across the pharmaceutical value chain provide a solid foundation for sustained growth.”

The Mehta Equities expert added that a valuation parse post listing is still in a comfortable zone to "HOLD" Akums Drugs and Pharmaceuticals Ltd IPO for a long-term perspective.

"We believe the market can give Akums a premium multiple for its leadership position, which may result in delivering healthy post-listing gains on its issue price," Prashanth Tapse of Mehta Equities concluded.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.