Mukka Proteins lists with 43% premium: Should you buy, sell, or hold the stock?

The Rs 224-crore public issue of Mukka Proteins failed to live up to the hype, but the company's stock listed with a 43 percent premium over its issue price on March 7. The grey market premium painted a different picture where the shares were trading with massive triple-digit gains.

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Wondering what to do with the stock? Here's what market experts have to say.

"We advise investors to book profits upon listing and subsequently consider investing in the company after evaluating its quarterly performance in the near term," Dhruv Mudaraddi, research analyst at StoxBox, said. He also said that the company has established a strong customer base and relationships with significant aqua feed, poultry feed, and pet food producers.

The company facilities, being strategically located, provide access to key raw materials, and pelagic fishes such as sardines, mackerel, and anchovy, minimising dependence on one particular coastal landing site. "The company presents a persuasive investment opportunity in the fish protein industry, given its strong market position, diversified product portfolio, and global presence."

Shivani Nyati of Swastika Investmart believes that even as the issue did not reach pre-listing highs, the 43 percent premium showcases investor confidence. Mukka presents a good opportunity for investors seeking exposure to the fish protein sector. "Existing investors who want to book listing gains may exit their holdings, however, investors with a long-term view are advised to hold their share by keeping a stop loss at 35," she said.

Amit Goel from Pace 360 is of the view that it might draw first-movers with the elegant post-listing. "Given its positioning within the industry, investors might be drawn to it for the potential medium- to long-term gains". He also added that the FY24 annualised earnings make the issue reasonably priced.

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