Mrs Bectors Food share has seen profit-booking after clocking a stellar debut on December 24. The share has lost 12.01% to Rs 524 till date against the close of Rs 595.55 on listing day. At 1:24 pm, Mrs Bectors Food stock was trading 5.84% lower at Rs 526.20 against previous close of Rs 559.30 on BSE.
Market cap of the firm fell to Rs 3,092 crore on BSE today. On the listing day, market cap rose to Rs 3,410 crore.
Share of the firm made a stellar market debut on December 24. Mrs Bectors Food share listed at 73.9% to the issue price of Rs 288. Share of Mrs Bectors Food opened at Rs 501 on BSE.
The share further rose to Rs 601.20 intra day, a 108.75% premium above the issue price. Later, it closed 106.79% higher to its issue price.
On NSE, the share listed at Rs 500 against IPO issue price of Rs 288. It closed at Rs 594.2 on NSE, logging gain of 106.20% or Rs 306.20 against its issue price.
The share rose up to Rs 600 clocking gains of 108.33% on intra day basis. The price band of the IPO was fixed at Rs 286-288 per equity share.
Hemang Jani, head - equity strategy, broking and distribution, Motilal Oswal Financial Services said, "Over FY18-20, the company's PAT has reduced from Rs 32 crore to Rs 28.2 crore. Sales have also declined in the same period mainly due to capex done by the firm. The stock opened at a premium of 100 percent over its issue price of Rs 288 per share due to positive sentiment in the market. At current market price of Rs 580, the valuations seem stretched at 40 times FY 22 consensus EPS of Rs. 15. So, it would be advisable to look for better options within the sector with stronger revenue visibility and better balance sheet."