Valiant Laboratories share price touches upper circuit after strong debut. Buy, hold or exit?

Stock market today: Valiant Laboratories share price today listed on BSE and NSE at strong premium. The newly listed trade-for-trade stock further extended its gains and went on to touch 5 per cent upper circuit within few minutes of Valiant Laboratories IPO listing ceremoney. 

Valiant Laboratories share price listed on BSE at ₹161 apiece and went on to climb a new high of ₹169.05 per share levels. Likewise, Valiant Laboratories shares opened on NSE at ₹162.15 per share levels and went on to hit intraday high of ₹170.25 levels, delivering around 21 per cent gain against Valiant Laboratories IPO price band of ₹133 to ₹140 per equity share.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Buy or sell after strong debut

According to stock market experts, Valiant Laboratories IPO had received strong response by investors and hence the issue was expected to deliver strong listing gain to the allottees. However, they maintained that its parent company, Valiant Organics Ltd has nopt done well in last two years and hence Valiant Laboratories shares may go downside after profit booking trigger. They said that the listed company has limited business resources and depends heavily on its parent company for business opportunities. Experts advised allottees to 'book profit and exit.'

Vinyas Innovative Technologies shares make stellar debut; lists at 100% premium

Speaking on Valiant Laboratories share price outlook, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, “Strong premium from the scrip was expected as market mood was bullish and the issue had received strong response from investors across sections. However, its parent company Valiant Organics Ltd has not done well in last two years and hence it may impact the prospects of Valiant Laboratories shares.”

Arun Kejriwal advised investors to book profit and look at other quality stocks as the stock may witness ‘sharp fall’ once profit booking triggers in the chemical stock.

Organic Recycling Systems shares debut at 7.5% premium at ₹215 on BSE SME

On why one should book profit after over 20 per cent listing gain, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Most of the Valiant Laboratories business' comes from its parent company and hence the newly listed company depends heaily on its parent company for business opportunities. Apart from this, chemical segment is expected to remain bearish for few quarters, especially in winter season. So, I would advise allottees to book profit and exit once trading begins in Valiant Laboratories shares.”

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.