R K Swamy makes lackluster market debut: Should you buy, sell, or hold the stock?

It has been a rough start to the day on March 12 for R K Swamy shareholders after the stock made a dismal debut on the exchanges, listing at 13 percent discount over its issue price of Rs 288. The listing lagged analyst estimates who predicted the shares to list at Rs 300-310, a premium of about 5 percent.

Confused about whether to buy, sell, or hold the stock? Here's how market experts view the counter.

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Prashanth Tapse from Mehta Equities suggested the investors who've been allotted shares to 'hold' for the long term while those investors who wish to add on listing date can wait and watch the space post-listing performance before taking any action. The analyst also believes that the stock is likely to get more traction after the debut as it would be the first of its kind and a pure play for a one-stop marketing solutions company to be listed on the exchanges.

Dhruv Mudaraddi of StoxBox stated: "We sense that the inherent nature of the digital marketing analytics business is such that it entails higher initial risk followed by a phased replication model upon successful rollout. We, therefore, advise investors who have received allotment to hold shares from a medium to long-term perspective."

He also added that the company's integrated marketing services approach, makes it strategically positioned to capitalise on India's burgeoning digital infrastructure growth spurred by initiatives like the 'Digital India' campaign and the expansion of 4G and 5G networks.

"The muted pre-listing GMP and negative listing indicate a cautious investor approach, possibly due to volatile market conditions or concerns about competition and working capital requirements," Shivani Nyati of Swastika Investmart said. Investors are advised to evaluate their risk tolerance before making any decisions, she further added.

R K Swamy, founded in 1973, specialises in integrated marketing communications, customer data analysis, full-service market research, and syndicated studies.

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