Heranba IPO listing is a big success; now, experts unveil this money-making strategy - buy these stocks

Heranba IPO has got bumper listing on Indian bourses today. Those who invested in the company's initial public offer are getting more than 40 per cent returns on their money. Currently, Heranba share price is trading at around 915 (at 10:15 AM on 5th March 2021), which is around 44 per cent higher than IPO price. However, whether to book profit at current levels or hold, is the dilemma that Heranba shareholder are facing as the Government of India (GoI) is going to reduce GST on fertilisers and pesticides. Since, Heranba Industries deals in these products, stock market experts are advising investors to book listing gains and re-enter at around Rs 800 to Rs 825 per share levels.

Speaking on the Heranba share price outlook, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The Government of India is going to announce GST reduction for fertilisers and pesticides and Heranba Industries is a major player in these segments, and therefore, I would recommend investors to enter in Heranba shares at around Rs 800 to Rs 825 levels for the target up to Rs 1200 before the quarterly results of the company comes after the IPO listing."

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Gorakshkar said that the company's fundamentals are strong and the government support for the industry they belong to is also coming. Apart from this, due to the COVID-19 pandemic fear, its business is also looking attractive. Hence, there is no doubt that the HEranba shares will remain strong in the days to come.

Suggesting Heranba shareholders to book profit and use that money in a diversified manner, Saurabh Jain, AVP — Research at S&P said, "Heranba IPO has got bumper listing and 40 per cent is enough to book-profit. In fact, the GoI reducing GST for pesticides and fertilisers should be used to maximise one's gains from the stock market. One should book profit in Heranba and use that money in a diversified stock investment by choosing other market leaders of the fertiliser and pesticide industry." 

Asked about the shares that one can look at while diversifying one's stock portfolio, Jain said that one should use the Heranba share money gain to buy stocks like Chambal Fertilisers, Coromandal International and RCF (Rashtriya Chemical Fertilisers).

Tags: IPO, Markets

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