Stock market today: After listing at a strong premium of near 11%, Manipal Health Enterprises’ share price ascended further and touched an intraday high of ₹674 apiece on the NSE. The Manipal Health Enterprises shares listed on the NSE at ₹652, whereas on the BSE, it debuted at ₹655 per share. So, it would be tricky for the lucky allottees to decide whether to book a profit or wait for further gains.
According to stock market experts, the newly listed stock is trading at a premium valuation with a limited margin of safety. This is because a significant portion of the net proceeds would be used to repay the debt taken out to finance recent acquisitions. So, the listing won’t have much impact on the company’s balance sheet, as it would have limited funds for further expansion. They advised low-risk investors to book profits and exit, whereas high-risk investors can hold the scrip, maintaining a trailing stop-loss at ₹590.
Buy, sell, or hold?
Unveiling the strategy post-listing of Manipal Health shares, Shivani Nyati, Head of Wealth at Swastika Investmart, said, despite the positive listing, the stock is trading at a premium valuation with limited margin of safety. A major portion of the IPO proceeds will be used to repay acquisition debt, leaving limited funds for future expansion, while the company remains highly dependent on Karnataka, which contributes 46%-60% of its revenue.
“Investors who received the allotment can continue to hold the stock, while fresh investors should wait for better entry levels or signs of further debt reduction before buying. Maintain a stop-loss at ₹620 to protect listing gains,” the Swastika Investmart expert said.
On how to maximise one’s returns, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The company is going to become a debt-free company, using the net proceeds of the public offer. So, the stock may continue to rise over the coming sessions, as being a debt-free company in the healthcare segment is no small achievement. So, those who have a low-risk appetite are advised to book profit and exit, whereas those who have a high-risk appetite are advised to maintain a trailing stop-loss at the issue price of ₹590 and wait for the levels they have in mind.”
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.
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