Manoj Vaibhav Gems shares rangebound after muted debut; should you hold or exit?
Shares of Manoj Vaibhav Gems 'N' Jewellers saw some buying and inched up slightly, best at 3 per cent to Rs 221.90 during its maiden trading session to but dropped to Rs 210-levels.
- Oct 3, 2023,
- Updated Oct 3, 2023 1:56 PM IST
Shares of Manoj Vaibhav Gems 'N' Jewellers (MVGJL) struggled to find any buyers after its disappointing debut on Tuesday as the stock remained rangebound as the session progressed. Shares of Manoj Vaibhav Gems 'N' Jewellers were listed at par, that is its issue price of Rs 215 on both BSE and NSE. Following the listing, shares of Manoj Vaibhav Gems 'N' Jewellers saw some buying and inched up slightly, best at 3 per cent to Rs 221.90 during its maiden trading session to but dropped to Rs 210 level. However, the counter turned flat, hovering around 215-218-mark during the second half of the day. Analysts remain divided over the counter even after listing. Some analyst recommend investors to hold the stock for long-term considering its expansion plans and sound financials. While others suggest investors to exit the counter citing the expensive valuations and smaller size of the company. As expected, the Manoj Vaibhav Gems ‘N’ Jewellers IPO listed flat on the bourses. Looking at the bigger picture, the company has displayed steady growth in revenue and even more robust profit growth which is up more than three-fold in two years. It boasts a 23 per cent return on its equity in FY23, attractive compared to its peers, said Dhruv Mudaraddi, Research Analyst at StoxBox. "Based on the prospects of the sector, the company’s product catalogue, its stronghold in the southern markets, and a good track record, we remain positive on the company and recommend investors who have received allotment to hold the stock from a medium to long term perspective," he suggested. Manoj Vaibhav Gems 'N' Jewellers offered its shares in the price band of Rs 204-215 per share with a lot size of 69 shares and its multiples between September 22 to September 26. The company raised a little more than Rs 270 crore, of which Rs 210 crore constitutes the sale of fresh equity shares. The issue was overall subscribed 2.33 times. Manoj Vaibhav Gems and Jewels made a flat debut on the stock markets as IPO received a muted response, and it was subscribed to only 2.25 times due to factors such as expensive valuations; relatively smaller size, and highly competitive jewelry market, said Shivani Nyati, Head of Wealth at Swastika Investmart. "Overall, the listing of Manoj Vaibhav Gems and Jewels was in line with expectations. Investors who received allotments in the IPO should consider exiting their position," she advised. Manoj Vaibhav Gems 'N' Jewellers is a South India-based regional jewelry company which offers gold, silver jewelry; diamond jewelry; precious gemstones; and other jewelry products. It sells its product range through its retail showrooms in micro markets of Telangana and Andhra Pradesh and through its website.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.
Shares of Manoj Vaibhav Gems 'N' Jewellers (MVGJL) struggled to find any buyers after its disappointing debut on Tuesday as the stock remained rangebound as the session progressed. Shares of Manoj Vaibhav Gems 'N' Jewellers were listed at par, that is its issue price of Rs 215 on both BSE and NSE. Following the listing, shares of Manoj Vaibhav Gems 'N' Jewellers saw some buying and inched up slightly, best at 3 per cent to Rs 221.90 during its maiden trading session to but dropped to Rs 210 level. However, the counter turned flat, hovering around 215-218-mark during the second half of the day. Analysts remain divided over the counter even after listing. Some analyst recommend investors to hold the stock for long-term considering its expansion plans and sound financials. While others suggest investors to exit the counter citing the expensive valuations and smaller size of the company. As expected, the Manoj Vaibhav Gems ‘N’ Jewellers IPO listed flat on the bourses. Looking at the bigger picture, the company has displayed steady growth in revenue and even more robust profit growth which is up more than three-fold in two years. It boasts a 23 per cent return on its equity in FY23, attractive compared to its peers, said Dhruv Mudaraddi, Research Analyst at StoxBox. "Based on the prospects of the sector, the company’s product catalogue, its stronghold in the southern markets, and a good track record, we remain positive on the company and recommend investors who have received allotment to hold the stock from a medium to long term perspective," he suggested. Manoj Vaibhav Gems 'N' Jewellers offered its shares in the price band of Rs 204-215 per share with a lot size of 69 shares and its multiples between September 22 to September 26. The company raised a little more than Rs 270 crore, of which Rs 210 crore constitutes the sale of fresh equity shares. The issue was overall subscribed 2.33 times. Manoj Vaibhav Gems and Jewels made a flat debut on the stock markets as IPO received a muted response, and it was subscribed to only 2.25 times due to factors such as expensive valuations; relatively smaller size, and highly competitive jewelry market, said Shivani Nyati, Head of Wealth at Swastika Investmart. "Overall, the listing of Manoj Vaibhav Gems and Jewels was in line with expectations. Investors who received allotments in the IPO should consider exiting their position," she advised. Manoj Vaibhav Gems 'N' Jewellers is a South India-based regional jewelry company which offers gold, silver jewelry; diamond jewelry; precious gemstones; and other jewelry products. It sells its product range through its retail showrooms in micro markets of Telangana and Andhra Pradesh and through its website.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.