Uniparts India share price dips further after muted listing. Buy, sell, hold?
3 min read . Updated: 12 Dec 2022, 10:48 AM IST
Premium- Uniparts India share price today opened on BSE and NSE at ₹575 apiece levels
Uniparts India shares made a muted debut on Dalal Street today and the engineered systems and solutions company's stock dipped further making intraday low of ₹539 apiece on BSE. According to stock market experts, those wo got Uniparts India shares through allotment process can hold the stock maintaining stop loss at ₹535 for short to medium term target of ₹660 whereas fresh buyers can play safe and buy the stock above ₹580 apiece levels for long term target of ₹750 per share mark.
However, they said that high risk traders can take fresh position in the scrip at current levels maintaining strict stop loss at ₹500 levels for medium term target of ₹660 and long term target of ₹750 apiece levels.
Advising lucky allottees to hold the scrip despite muted listing, Santosh Meena, Head of Research at Swastika Investmart said, "Uniparts India shares debuted at ₹575 over its issue price of ₹577. But the issue had received a good response from investors on both the institutional and retail sides. The company’s major business areas are agriculture, construction, forestry, and after-market. The company has a leading market presence, a global business model, and long-term relationships with key customers. It also enjoys a healthy financial position with continuous growth in revenue and profit and improving margins. As for the risk factor, the issue is a complete offer for sale. However, the issue is attractively priced at a P/E valuation of 15.61, which is lower than its listed peers. So, allottees who applied for the public offering for listing premium are advised to hold the stock maintaining stop loss at ₹535 apiece levels."
On immediate target that Uniparts shareholders can look at, Ravi Singhal, CEO at GCL Securities said, "There is nothing wrong with Uniparts India shares. Muted listing of Uniparts IPO can be attributed to two basic reasons — complete OFS and weak sentiments on Dalal Street. Due to 100 per cent OFS, big investors are expected to remain in wait and watch mode after listing and they may take time to enter in the stock. So, the stock is expected to remain volatile for few more sessions and hence allottees are advised to hold the stock for short to medium term target of ₹660 apiece levels."
For those who want to buy Uniparts India shares, Ravi Singhal of GCL Securities said, "High risk investors can buy Uniparts India shares at current levels for medium term target of ₹660 maintaining stop loss at ₹500 apiece levels as the stock may become highly bullish after sustaining above its issue price. However, for playing safe, one should buy the stock above ₹580 apiece levels for long term target of ₹750 apiece levels maintaining stop loss at ₹525 apiece levels."
Highlighting the fundamentals that may support Uniparts India share price in upcoming sessions, Manoj Dalmia, Founder & Director at Proficient Equities said, "Uniparts India Limited is a manufacturer of engineered systems and solutions. With a presence in more than 25 countries, the company is one of the top suppliers of systems and parts for the off-highway industry in the agriculture, construction, forestry, and mining (“CFM") and aftermarket sectors. Balkrishna Ind., Bharat Forge, and Ramkrishna Forgings are classified as their peers by UIL. Their P/E ratios are 27, 49, 37, and 14, 55. UIL has found a niche in the market in which it operates. Investors may consider depositing funds for medium- to long-term gains based on its most recent financial performance."
Uniparts India shares today listed on BSE and NSE. The engineered systems and solutions company's stock had a muted debut as it opened at ₹575 apiece levels on BSE, ₹2 below its upper price band of ₹577.
Uniparts India IPO received strong demand, which opened from November 30 to December 2nd, and it was oversubscribed during three day bidding.
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