Electronics Mart India shares hit upper circuit day after listing: What should investors do?

Electronics Mart India share price: A day after the bumper listing on Monday, the buying interest in the stock continues as Electronics Mart India's share price touched an upper circuit of 10 per cent to Rs 93 per share levels on both NSE and BSE on Tuesday. The counter was listed at a whooping nearly 53 per cent premium yesterday.

Electronics Mart made a stellar stock market debut at Rs 89.40 apiece, registering a jump of 51.52 per cent on the BSE against the issue price of Rs 59 apiece. Similarly, it got listed at Rs 90 apiece, rallying 52.54 per cent on the NSE.

During the day, it rallied 54.23 per cent to Rs 91. It finally ended at Rs 84.45 apiece, higher by 43.13 per cent. On the NSE, it listed at Rs 90, rallying 52.54 per cent.

Electronics Mart stock traded volatile after listing and eventually closed below the listing price, at Rs 85.9 and Rs 84.5 per share on the BSE and NSE. Despite profit booking sentiment after listing, it closed almost 42 per cent higher from its issue price.

The Initial Public Offering (IPO) of Electronics Mart India received 71.93 times subscriptions on the final day of the offer on October 7. The IPO had a fresh issue of equity shares aggregating to Rs 500 crore with no offer-for-sale component.

The company’s strong listing can be attributed to strong interest from investors, reasonable valuations, and a sanguine growth outlook, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd said.

The consumer durable and electronics industry in India is underpenetrated and has a long runway of growth, the analyst at Swastika Investmart said, adding that nevertheless, the electronic and consumer durable market is extremely competitive and has been disrupted by e-commerce players.

“Further, the company faces significant competition from players like Reliance Retail, Croma, etc. Therefore, we advise investors to lock in listing gains and only aggressive investors should consider making a long-term commitment to the company,” Gour further said, suggesting that those who applied for listing gains can maintain a stop loss of Rs 77.