Nureca stock surprised everyone on Dalal Street on the listing day as it was locked at day's highest level for almost entire session on February 25. The stock closed at Rs 666.65 on the BSE, which was also an intraday high, a massive 66.66 percent premium over issue price of Rs 400 and a 5 percent premium over the opening price.
The opening price discovered at Rs 634.95 in the pre-opening trade, and then the exchange had fixed 5 percent upper (Rs 666.65) and lower (Rs 603.25) circuits from the opening tick. In initial trade, the stock had touched a lower circuit but immediately gained momentum and stayed at upper circuit throughout the session.
On the National Stock Exchange, the stock closed at the upper circuit of Rs 645.75 with a gain of 61.44 percent over issue price. It traded with volume of 2,09,580 equity shares on the NSE and 1 lakh shares on the BSE.
Experts had expected home healthcare and wellness product company Nureca to list with a 10-20 percent premium.
The B2C company had raised Rs 100 crore through public issue which was subscribed 40 times during February 15-17. Nureca has a well-diversified product portfolio including chronic device products, orthopedic products, mother and child products, Nutrition supplements, and lifestyle products to cater to the home healthcare market which is expected to grow at 11 percent CAGR by 2025.
Nureca locked in upper circuit on debut day; what should investors do?
The company enables its customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle.
Nureca is considered as a first digital company wherein it sell its products through online channel partners and through its own website drtrust.in. It is known for its product innovation and some of its known brands are Dr Trust, Dr Physio and Trumom.
The company delivered robust performance over FY18-20 with revenue and PAT CAGR of 123 percent and 43 percent, respectively. In first half of FY21, revenue and PAT grew 1.2x and 6x, respectively compared to FY20 financials.
"Given the huge opportunity in home healthcare segment, its asset-light business model, competitive and well-diversified products, Nureca is likely to sustain its growth momentum in subsequent years. It currently trades at P/E of 8.9x FY21E annualised EPS which is very attractive," Hemang Jani, Head of Equity Strategy, Broking & Distribution at Motilal Oswal Financial Services (MOFSL) said.
Yash Gupta, Equity Research Associate at Angel Broking, suggests that investors who applied for listing gains can book profit in the next 1-2 days while short-term investors should hold the stock. "Even at these valuations, stock looks attractive for long term."