Sah Polymers: Should you book profits after a stellar listing pop?

Sah Polymer's shares extended its early gains on Thursday, after a strong listing pop, and hit the daily circuit limit on the exchanges during its maiden trading session.

Sah Polymers' shares zoomed another five per cent to Rs 89.25, locked in the upper circuit and extended overall gains to 37 per cent. The scrip had listed at Rs 85 on both NSE and BSE, 30 per cent higher than its issue price of Rs 65.

Majority of analysts suggest that investors can book profits in the company after the gains on debut amid the rising volatility in the broader markets. However, a few suggest that aggressive investors can hold it for the long run.

The company surprised the Street with a strong opening and now investors who applied for listing gains can hold this issue with a stop loss of Rs 76.5, said Santosh Meena, Head of Research at Swastika Investmart.

"Only aggressive investors are advised to hold it for a long term. It was a small IPO of just Rs 66.30 crores which received a strong subscription," he said.

Sah Polymers' initial public offering (IPO) ran from December 30, 2022, to January 4, 2023. The Udaipur based company sold its shares in the range of Rs 61-65 apiece

Investors should book profits in the Sah Polymers and keep money off the table amid the rising volatility at Dalal Street, suggests Arafat Saiyed, Senior Research Analyst at Reliance Securities.

In his pre-IPO report, he said that the company has a quality product mix, strong customer base across geographies and
industries, good financials and a wide product portfolio, but keep it unrated citing the pricey valuations on the current financials.

The quota reserved for retail bidders was booked 39.78 times in the four-day bidding process. The quota reserved for non-institutional buyers was subscribed 32.69 times. The quota reserved for institutional bidders saw 2.4 times bidding.

Sah Polymers is a manufacturer and seller of Polypropylene/High-Density Polyethylene FIBC Bags, Woven Sacks, HDPE/PP Woven Fabrics, and Woven polymers.

Sah Polymers offer customised bulk packaging solutions to business-to-business (B2B) manufacturers catering to different industries in both Indian and international markets.

Also Read: Sah Polymers shares list at 30% premium over issue price