1 hr ago
Hero Motors, SS Retail, Jindal Supreme Shares Surge After IPOs
Several newly listed companies saw their shares rise sharply above their IPO prices.
SS Retail started trading at Rs 639.10, much higher than its IPO price of Rs 424.
Its shares later reached Rs 870.
Jindal Supreme also began trading above its IPO price and reached Rs 141.09.
The report says gains across Hero Motors, SS Retail and Jindal Supreme reached as much as 105% in three days.
One analyst said investors seeking quick listing gains could consider taking some profits.
Another said long-term investors should study sales, profits, expansion and cash flow.
The future performance of these companies will depend on how well their businesses grow and execute their plans.
Hero Motors, SS Retail and Jindal Supreme shares surged by as much as 105% over their IPO prices in three days.
SS Retail listed on the BSE at Rs 639.10, a 50.73% premium to its Rs 424 issue price.
SS Retail rose 7.11% on Friday to Rs 870, representing a 105.19% gain over its IPO price.
Jindal Supreme listed at Rs 121.90, up 31.08% from its Rs 93 issue price, and later reached Rs 141.09.
Analysts advised profit-taking for short-term investors while urging long-term investors to monitor company performance and valuations.
- Who
- Hero Motors, SS Retail and Jindal Supreme, along with analysts Kranthi Bathini and Ravi Singh.
- What
- The three companies’ shares rose sharply above their IPO prices after listing, with SS Retail gaining 105.19% at its reported high.
- Where
- SS Retail and Jindal Supreme traded on the Bombay Stock Exchange; the article does not specify the exchange for Hero Motors.
- When
- The gains were reported over three days, including trading on Friday.
- Why
- The companies attracted strong market interest after their debuts, while their longer-term valuations depend on business growth, profitability and cash generation.
Short-Term Profit-Taking View
Long-Term Business-Tracking View
Response to sharp gains
Short-Term Profit-Taking View
Kranthi Bathini said investors who invested for listing-day gains could consider booking some profits.
Long-Term Business-Tracking View
Ravi Singh said long-term investors may still find SS Retail’s underlying business relevant if it delivers sustained revenue and earnings growth.
What investors should monitor
Short-Term Profit-Taking View
Investors should avoid relying solely on strong debut performance and should wait for results over a couple of quarters, along with management commentary.
Long-Term Business-Tracking View
Investors should track company-specific indicators such as revenue growth, same-store sales, margins, store expansion, order execution, capacity expansion, profitability and cash flow.
Hero Motors outlook
Short-Term Profit-Taking View
Singh suggested fresh investors in Hero Motors might wait for price stability after its sharp rise.
Long-Term Business-Tracking View
The company could benefit from electric-drive motor market growth, but its outlook depends on sustaining growth and improving profitability and cash generation.
Key facts
- SS Retail IPO price
- Rs 424
- SS Retail listing price
- Rs 639.10 on the BSE
- SS Retail listing premium
- 50.73% above its IPO price
- SS Retail reported high
- Rs 870, or 105.19% above its IPO price
- Jindal Supreme IPO price
- Rs 93
- Jindal Supreme listing price
- Rs 121.90, up 31.08% from its IPO price
- Jindal Supreme reported high
- Rs 141.09, or 51.71% above its IPO price
Quotes
Kranthi Bathini
Equity Strategist at WealthMills Securities
“The electric-drive motor market is also expected to grow at 28-32 per cent CAGR through CY31. For Hero Motors, fresh investments from investors might wait for price stability. The outlook will depend on the Company’s ability to sustain growth, improve profitability and cash generation.”
businesstoday.in
“Those who have invested for listing-day gains can consider booking some profits in these market debutants. For any serious investment, investors should monitor the company's results for a couple of quarters, along with management commentary.”
businesstoday.in
Sources
Related news
SS Retail Leads IPO Debuts as Hero Motors Recovers
IPO GMP Comparison: SS Retail Leads, Hero Motors Trails
SS Retail Shares Jump Nearly 51% In Market Debut
Jindal Supreme Shares Surge 31 Percent After Strong Listing
Hero Motors Shares Rebound After Weak IPO Listing
Hero Motors, SS Retail, Jindal Supreme IPO Allotment Status
Indegene Shares Hit 52-Week High After Axis Buy Call
Motilal Oswal Sees 37% Upside in SPR Auto Technologies
NSE Shares Slip After Strong Debut, Investors Book Profits
Indegene Shares Rise as Motilal Oswal Upgrades Stock, Sets Target
