Blue Jet Healthcare shares see buying interest post debut; should you hold the stock?
Shares of Blue Jet Healthcare Ltd were listed at the bourses at a premium 10 per cent at Rs 380 on the National Stock Exchange (NSE) and at a premium of only 4 per cent at Rs 359.90 on the BSE.
- Nov 1, 2023,
- Updated Nov 1, 2023 2:05 PM IST
Blue Jet Healthcare shares found buyers at Dalal Street, after making a decent debut at Dalal Street. The company saw buying interest from the investors, who pushed the stock to hit upper circuit post listing. However, some profit booking amid the muted market sentiments allowed investors to trade, unlocking the counter. Shares of Blue Jet Healthcare Ltd were listed at the bourses at a premium 10 per cent at Rs 380 on the National Stock Exchange (NSE) and at a premium of only 4 per cent at Rs 359.90 on the BSE. The company had issued shares at Rs 346 apiece during the three-day bidding process. Post listing, shares of Blue Jet Healthcare surged about 10 per cent to Rs 395.85 on BSE, commanding a total market capitalisation close to Rs 7,000 crore. The rise took overall gains to 15 per cent compared to the given issue price. However, there were more buyers compared to sellers. Analysts tracking the counter are positive on the stock as suggest investors to hold it for long term only citing its healthy financials, robust return rations and future growth prospects of the company. Blue Jet Healthcare on its listing, delivered muted gains to the Investor. Blue Jet's core strength lies in its huge manufacturing capacity of contract media intermediates, trait of high entry barrier industry and long-term relationships with multinational customers, said Mahesh M Ojha AVP - Research at Hensex Securities, suggesting investors to hold for long term perspective. The company's financial performance is also strong, with consistent revenue and profit growth in recent years. Overall, the listing of Blue Jet Healthcare was a success. The company's strong fundamentals and good subscription levels were positive factors for this. Investors may hold it by keeping a stop loss at Rs 340, said Shivani Nyati, Head of Wealth at Swastika Investmart. The IPO of Blue Jet Healthcare was open for bidding between October 25-27. The pharma company offered its shares in the range of Rs 329-346 apiece with a lot size of 43 shares to raise a total of Rs 840.27 crore. The issue was entirely an offer-for-sale (OFS) of up to 2,42,85,160 equity shares, which was overall subscribed 7.95 times during the three-day bidding process. Blue Jet Healthcare IPO had a decent listing on the bourses. The company has strong RoE and ROCE of 26.6 per cent and 31.9 per cent, respectively, in FY23. The growth in the CDMO model, robust financial performance and expanding production capacity is likely to drive the company's performance going ahead, said Prathamesh Masdekar, Research Analyst at StoxBox, "We remain optimistic on the issue and recommend investors who have received allotment to hold their shares on the opening day and consider buying on dips as well from a medium to long-term perspective," he added. Incorporated in 1968, Blue Jet Healthcare is a pharmaceutical and healthcare ingredient player, which also serves as an intermediate company. The Navi Mumbai-based company was the first manufacturer of saccharin and its salts (artificial sweeteners) in the country.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Ambuja Cements Q2 results: Net profit zooms 1,835%; stock slips 3%
Blue Jet Healthcare shares found buyers at Dalal Street, after making a decent debut at Dalal Street. The company saw buying interest from the investors, who pushed the stock to hit upper circuit post listing. However, some profit booking amid the muted market sentiments allowed investors to trade, unlocking the counter. Shares of Blue Jet Healthcare Ltd were listed at the bourses at a premium 10 per cent at Rs 380 on the National Stock Exchange (NSE) and at a premium of only 4 per cent at Rs 359.90 on the BSE. The company had issued shares at Rs 346 apiece during the three-day bidding process. Post listing, shares of Blue Jet Healthcare surged about 10 per cent to Rs 395.85 on BSE, commanding a total market capitalisation close to Rs 7,000 crore. The rise took overall gains to 15 per cent compared to the given issue price. However, there were more buyers compared to sellers. Analysts tracking the counter are positive on the stock as suggest investors to hold it for long term only citing its healthy financials, robust return rations and future growth prospects of the company. Blue Jet Healthcare on its listing, delivered muted gains to the Investor. Blue Jet's core strength lies in its huge manufacturing capacity of contract media intermediates, trait of high entry barrier industry and long-term relationships with multinational customers, said Mahesh M Ojha AVP - Research at Hensex Securities, suggesting investors to hold for long term perspective. The company's financial performance is also strong, with consistent revenue and profit growth in recent years. Overall, the listing of Blue Jet Healthcare was a success. The company's strong fundamentals and good subscription levels were positive factors for this. Investors may hold it by keeping a stop loss at Rs 340, said Shivani Nyati, Head of Wealth at Swastika Investmart. The IPO of Blue Jet Healthcare was open for bidding between October 25-27. The pharma company offered its shares in the range of Rs 329-346 apiece with a lot size of 43 shares to raise a total of Rs 840.27 crore. The issue was entirely an offer-for-sale (OFS) of up to 2,42,85,160 equity shares, which was overall subscribed 7.95 times during the three-day bidding process. Blue Jet Healthcare IPO had a decent listing on the bourses. The company has strong RoE and ROCE of 26.6 per cent and 31.9 per cent, respectively, in FY23. The growth in the CDMO model, robust financial performance and expanding production capacity is likely to drive the company's performance going ahead, said Prathamesh Masdekar, Research Analyst at StoxBox, "We remain optimistic on the issue and recommend investors who have received allotment to hold their shares on the opening day and consider buying on dips as well from a medium to long-term perspective," he added. Incorporated in 1968, Blue Jet Healthcare is a pharmaceutical and healthcare ingredient player, which also serves as an intermediate company. The Navi Mumbai-based company was the first manufacturer of saccharin and its salts (artificial sweeteners) in the country.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Ambuja Cements Q2 results: Net profit zooms 1,835%; stock slips 3%