Shares of SS Retail Ltd, Hero Motors Ltd, and Jindal Supreme (India) Ltd continued their upward trajectory on Thursday, extending the positive momentum from their respective market listings on Wednesday.
SS Retail Soars to Multibagger Status
SS Retail made a strong debut on the BSE, listing at ₹639.10, a substantial 50.73% premium over its initial public offering (IPO) price of ₹424. The stock further surged by 16.06% on Thursday, reaching a high of ₹888. At this level, SS Retail has delivered multibagger returns, gaining an impressive 109.43% above its issue price.
Hero Motors Recovers, Jindal Supreme Posts Gains
Hero Motors, which initially saw a weak debut listing at ₹82.10 (a 2.26% discount to its IPO price of ₹84), quickly recovered. The stock continued its positive trend on Thursday, climbing 20% to hit a day's high of ₹118.21. This placed the scrip 40.73% above its original issue price.
Jindal Supreme also experienced a favorable market entry, listing at ₹121.90, a 31.08% increase from its IPO price of ₹93. The stock gained an additional 5% on Thursday, reaching a high of ₹134.38, trading 44.49% higher than its IPO price.
Analyst Commentary on Market Debutants
Kranthi Bathini, Equity Strategist at WealthMills Securities, advised investors who participated for listing-day gains to consider booking some profits. He suggested that for serious long-term investment, monitoring the companies' results for a few quarters and management commentary would be prudent.
Ravi Singh, Chief Research Officer at Master Capital Services, commented on SS Retail, noting that long-term investors might find its underlying business relevant due to growth in organized retail and changing consumer preferences. However, he emphasized tracking business execution, sustained revenue, earnings growth, and store expansion rather than solely focusing on initial listing performance.
For Jindal Supreme, Singh highlighted that short-term investors might focus on revenue growth and order execution, while long-term investors should track capacity expansion and its presence in the steel market. He added that upcoming results would provide more clarity on capacity utilization and cash flow generation.
Regarding Hero Motors, Singh pointed to the electric-drive motor market's projected 28-32% CAGR through CY31. He suggested that new investments in Hero Motors might await price stability, with the outlook depending on the company's ability to sustain growth, improve profitability, and generate cash.