Buy, Sell or Hold: Tarsons Products locked in 27% upper circuit to Rs 840 post tepid debut; what should investors do?

Tarsons Products stocks have been on a roll post tepid listing. The stocks were trading at Rs 840 per share on the BSE intraday trade on Friday. This was a 20% gain on listing price and 26.89% against issue price of Rs 662 per equity share. In the process, the stock was also locked in 27% upper circuit, hours after making tepid debut on bourses.

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The stocks were listed at a premium of 5.74% on BSE. The gain against listing price was Rs 38 per share on its market debut on BSE.  

What should Investors do now? 

Talking about subscription and listing, Santosh Meena, Head of Research, Swastika Investmart Ltd, said the company saw a good response from the investors as the IPO was subscribed 77 times. " The IPO was priced at 34x on annualized Q1FY22 at the upper price band of 662. However, the company's share price got settled at Rs 682 on NSE with a minor gain of 3%," he said.

'Long-term investor can hold, risk-taking investors can buy' 

Saying, Tarsons Products Limited is backed by a strong management team with great brand awareness and high-quality goods, he recommended log-term investors to hold. " The investors who applied for listing gain can keep stoploss of Rs 590, while long-term investors can hold the stock. Risk-taking investors can also buy the stock with the same stoploss," he said, adding that we may see profit booking in the stock in view of the global cues on the concerns of New variant of Covid-19.

"It is one of the leading life sciences suppliers in India. we may see demand for the products of Tarsons. The company aims to be debt fee post the IPO and is planning for CAPEX, which will further increase the revenues, the analyst added.

'Those playing for listing gain should book profit'

Aayush Agrawal, Sr. Research Analyst, Merchant Banking, Swastika Investmart Ltd, said, "The company has a strong cash flow and is likely to become debt-free post IPO. However, the valuations look expensive, therefore aggressive investors with a long-term view can hold this stock, while those who were playing for listing gain should book profit."  

"Hold with stoploss of Rs 750 and keep trailing the stoploss," Zee Business Managing Editor Anil Singhvi had suggested.

Tarsons Products IPO opened on November 15 and concluded on November 17, 2021.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)