Stock market today: Vibhor Steel Tubes shares hit upper circuit after listing at 181% premium. Buy or sell?

Stock market today: Vibhor Steel Tubes IPO listed on BSE and NSE delivering over 180 percent premium. Shares of Vibhor Steel Tubes Limited are listed on BSE at ₹421 apiece whereas on NSE, Vibhor Steel Tubes share price opened at ₹425 apiece. However, the dream debut of Vibhor Steel Tubes shares didn't end there. The newly listed stock extended its listing gain further and went on to touch an intraday high of ₹446.25 on NSE and ₹442 on BSE, locking in a 5 percent upper circuit within a few minutes of share listing.

According to stock market experts, Vibhor Steel Tubes shares have been listed at a whopping premium and have further extended their gains. They said that the stock is listed in the trade-to-trade category, which could be the possible reason for one-way movement. However, they maintained that the stock may continue to move either way on a little rise in trade volume. Hence, one should book profit and exit in the current market scenario and wait for the stock to settle down.

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Vibhor Steel Tubes share price outlook

Speaking on Vibhor Steel Tubes share price outlook, Dhruv Mudaraddi, Research Analyst at StoxBox said, "VSTL emerges as a pivotal player within the Indian steel industry, set against a burgeoning demand landscape and ambitious national targets for per capita steel consumption. The qualitative advantages of VSTL underscore its competitive positioning and operational strengths. With an integrated in-house design, engineering, and execution team, the company maintains meticulous control over quality and costs, enhancing its ability to meet client requirements efficiently."

Dhruv Mudaraddi of StoxBox went on to add that the company's longstanding client relationships, built on a foundation of strong execution and quality, further reinforce its market standing. Delving into the financials of VSTL reveals a pattern of robust and stable revenue growth, with sales nearly doubling over the past three years. The company maintains attractive returns ratios, supported by lean equity and asset base.

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"We advise investors to book profits on the listing day and subsequently consider investing in the company after evaluating its quarterly performance in the near term," said StoxBox expert.

Expecting Vibhor Steel Tubes shares to remain one of the circuit-to-circuit stocks of Dalal Street, Arun Kejriwal, Founder of Kejriwal Research and Investment Services said, "Vibhor Steel Tubes shares have been listed in the trade-to-trade segment and its circuit limit is 5 percent. Looking at the small size of the stock and the T2T category, I strongly believe that Vibhor Steel Tubes shares may move on either side on a little rise in trade volume. So, it may remain one of the circuit-to-circuit stocks of the Indian stock market. As the stock has already surged to the tune of 200 percent against its upper price band of ₹151 per equity share, I recommend lucky allottees to book profit and exit."

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