Syrma SGS Technology shares rise after strong debut. Buy, sell or hold?
Premium- Syrma SGS Technology share price today opened on BSE at ₹262 and went on to hit intraday high of ₹295 apiece
Syrma SGS Technology listed on BSE and NSE at strong near 19 per cent premium. Syrma SGS Technology share price opened on BSE at ₹262 and went on to further ascend to its intraday high of ₹295 apiece, delivering around 35 per cent listing gain to its allottees as the public issue was offered at a price band of ₹209 to ₹220 per equity share.
According to stock market experts, those who had applied for the listing gain should book profit and exit as they are already getting a handsome gain on their investment. However, for those who have a long term view, they can hold the stock with stop loss at ₹225 and keep on accumulating after a big dip as profit-booking by short-term investors is strongly awaited.
Speaking on the reasons for strong debut of Syrma SGS Technology shares, Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Syrma SGS Technology Ltd has debuted at ₹262 i.e. 19 per cent above its issue price. The company’s good listing can be attributed to positive market sentiments, outstanding prospects, and a good response from the investors. With a huge focus on R&D-based innovation and an experienced management team, the company has managed to enter into various growing segments like PCBA, Radio Frequency Identification (RFID), Electromagnetic and electromechanical parts, and other information technology-related products. The company’s geographically diversified manufacturing locations and the business model which starts from product concept design & focuses on every segment of the overall industry value chain give them a competitive advantage over other players." He advised allottees to hold the stock maintaining stop loss at ₹225 apiece levels.
On suggestion to those who missed to get Syrma SGS Technology shares during allotment process, Ravi Singhal, CEO at GCL Securities said, "Those who want to take fresh position in the scrip are advised to wait for the correction and buy around ₹270 apiece levels for 6-9 months target of ₹344 per share levels. In case of any big dip, which is expected after profit-booking by short term investors, allottees with long term perspective can accumulate the stock if they have surplus money and hold for 6-9 month target of ₹344 apiece levels."
Ravi Singhal of GCL Securities said that only those investors should buy the scrip, who have medium to long term view.
Syrma SGS Technology IPO was subscribed 32.61 times whereas its retail portion was subscribed 5.53 times. It was subscribed 87.56 times in QIB category whereas its NII portion got subscribed 17.50 times.
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