PremiumSona Comstar share price hit 20 per cent upper circuit after the lackluster listing at near 3.9 per cent premium. According stock market experts, this has happened because of the higher valuation of the Sona Comstar IPO by its promoters. They said that Sona Comstar IPO price was slightly higher than its actual valuation that forced investors to wait for the listing as they were skeptical about the valuation of the public issue. They advised investors to buy the counter after some dip as profit-booking is widely expected in the counter.
Speaking on whether one should buy Sona Comstar shares after listing Hemang Jani, Head Equity Strategist — Broking & Distribution at Motilal Oswal Financial Services said, "Sona Comstar, despite being in a niche space of EV components, saw a little tepid listing premium due to its large issue size of ₹5550 crore. On the other hand, Shyam Metalics witnessed good listing premium given its presence in the metal space which is in an upcycle and that too in the value added steel products. Both the companies are present in niche space and have good business fundamentals and financials. We like Sona Comstar given its presence in fast growing global EV market, diversified portfolio across categories and robust financials. Though the valuation at around 74x P/E appears fully priced in, given its thrust in fast evolving EV space both in India and globally, market would like to give premium to such emerging growth story."
Unveiling the investment strategy in Sona Comstar shares Abhay Doshi, Founder at UnlistedArena.com said, "Sona Comstar IPO was slightly overpriced and institutions were expecting tepid listing or may be below the issue price of ₹291 per shares. So, rather taking risk by subscribing at higher price, they waited for the Sona Comstar IPO listing and did the bulk buying in the shares post-listing that led to 20 per cent upper circuit in the counter. I am expecting profit-booking in the counter as retail and some other investors who applied for the IPO would like to book their listing gains. So, one should wait for dip in the counter and buy Sona Comstar shares as its financials and fundamentals are quite strong."
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