Blue Jet Healthcare lists with 9.8% premium: Should you buy, hold, or book profit?

Through the IPO, Blue Jet Healthcare raised Rs 840.27 crore

The stock of Blue Jet Healthcare made a strong debut on the bourses, listing at a 9.8 percent premium to the IPO price of Rs 346 on November 1. The shares opened at Rs 380 each on the NSE and Rs 359 each on the BSE.

The public issue had received a decent response from investors and now analysts recommend holding the stock for the long term owing to the company’s strong financial performance.

Soon after listing, the stock surged as much as 16 percent over the issue price, hitting an intraday high of Rs 402.35 on the NSE. Blue Jet Healthcare had raised Rs 840.27 crore from the public issue, which opened for subscription on October 25 and closed on October 27. It was entirely an offer-for-sale of 2.42 crore shares. The price band was fixed at Rs 329-346 per share.

Also Read: Blue Jet Healthcare trades over 13% premium to issue price

Should you buy, sell or hold Blue Jet Healthcare stock? Let's check out what the analysts say.

Swastika Investmart: Hold

Blue Jet Healthcare has a strong competitive advantage due to its high entry barriers and long-term relationships with multinational customers. The company's financial performance is also strong, with consistent revenue and profit growth in recent years, according to Shivani Nyati, head of wealth at Swastika Investmart Ltd. She advised investors to hold the stock by keeping a stop loss at Rs 340.

Stoxbox: Hold

The company’s RoE and ROCE stood at 26.6 percent and 31.9 percent in FY23. “The growth in the contract development and manufacturing organization (CDMO) model, robust financial performance and expanding production capacity are likely to drive the company's performance going ahead,” said Prathamesh Masdekar, Research Analyst, StoxBox. Masdekar remains optimistic on the issue and recommends investors who have received allotment to hold their shares and consider buying on dips as well from a medium to long-term perspective.

Also Read: Honasa Consumer IPO: Should you subscribe to Mamaearth’s Rs 1,701 crore issue?

Mehta Equities: Book profit

Despite the weak market mood, Blue Jet Healthcare's listing was better than street expectations. Prashanth Tapse, research analyst and senior vice-president of research at Mehta Equities Ltd, believes the listing premium is justified considering its niche product portfolio. Tapse advised conservative allotted investors to book profits while those who wish to buy more should wait and watch the market to settle considering decent long-term industry rationales.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.