Waterways Leisure Tourism shares hit 10% upper circuit for second straight day. Newly listed stock nears its issue price

Waterways Leisure Tourism share price remained in focus on Friday, 3 July, as the stock hit the 10% upper circuit for the second consecutive session, with investors continuing to accumulate shares despite its weak stock market debut earlier this week. Sustained buying interest in the operator of Cordelia Cruises kept the stock locked at the upper price band.

The rally comes after a disappointing listing on Wednesday, when the stock debuted at a sharp discount to its issue price of ₹808. On the BSE, the shares listed at ₹690, down 14.60%, and slipped as much as 22.85% intraday to ₹623.30, before settling at ₹667.35, a 17.40% discount to the issue price.

On the NSE, the stock opened at ₹681, down 15.71% from the IPO price, and ended its debut session at ₹668.10, down 17.31%. Despite the weak listing, the stock has witnessed strong buying interest over the past two trading sessions, hitting the upper circuit on both occasions.

Ravi Singh, Chief Research Officer at MasterTrust, said the stock's back-to-back upper circuits indicate that investors viewed the sharp post-listing correction as a buying opportunity rather than a sign of weakening fundamentals.

According to Singh, such price action is not uncommon in newly listed stocks, particularly when listing-day sentiment differs from the company's longer-term business prospects. He added that Waterways Leisure Tourism, which operates in India's nascent cruise tourism segment, stands to benefit from rising domestic travel and premium leisure spending. However, he cautioned that the stock is likely to remain volatile until it establishes a consistent earnings track record.

Singh advised investors not to be swayed by short-term price movements and instead focus on key business metrics such as execution, fleet expansion, occupancy levels and profitability over the coming quarters before taking a long-term view.

Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart, said investors who were allotted shares in the IPO can continue to hold the stock over the long term, while fresh investors should wait for stronger earnings visibility and more attractive entry levels before investing.

Nyati noted that despite favourable industry tailwinds, the IPO was priced at a steep P/E multiple of around 101x, leaving a limited margin of safety. Following the weak listing, she maintained a neutral stance on the stock, saying it is better suited to long-term investors than to those seeking listing gains.

Waterways Leisure Tourism IPO details

The Waterways Leisure Tourism IPO was subscribed 1.46 times on the final day of bidding last week, reflecting healthy investor interest.

The ₹585-crore public issue was priced in the ₹769-808 per share band and comprised entirely a fresh issue of 72 lakh equity shares, with no offer-for-sale (OFS) component.

The company intends to utilise the net proceeds primarily towards lease payments for its step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Pvt. Ltd., while the remaining funds will be used for general corporate purposes.

Waterways Leisure Tourism operates Cordelia Cruises, India's leading domestic ocean cruise brand, offering premium cruise experiences to destinations both domestic and international.

Disclaimer: This story is for educational purposes only. 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.