Buy, sell, hold: What should you do with Credo, RBZ Jewellers and Happy Forgings?

As the bulls charge the market to fresh highs during the day, should you take some money off the table now? Or, hold these new stocks, if not rush for some more of them? Let's hear out what analysts have to say about the new entrants to the market.

Also read: Buy, sell or hold: What should you do with Muthoot, Suraj Estate and Motisons post-listing?

Despite a bumper listing for Happy Forgings, Shivani Nyati, head of wealth at Swastika Investmart, suggests that the company is a mixed bag for investors. "A careful evaluation of both sides is crucial before making any investment decisions. Given the uncertainty surrounding the listing, a cautious approach is recommended. Existing investors in the IPO may consider holding their shares with a stop loss at 900. However, investors who were looking for listing gains may exit their positions," she said.

Read More: Happy Forgings IPO subscribed 82 times, QIB portion booked 220 times on final day

Dhruv Mudaraddi, research analyst at StoxBox, advises investors to book profits on the listing day and subsequently consider investing in the company after evaluating its quarterly performance in the near term even as the company’s increasing focus on producing market-accretive value-added products provides an opportunistic environment.

 Credo's issue started with a tepid listing but, by mid-day, the share price started picking up with 10 percent gains. The listing highlights the potential risks associated with the highly competitive market and seasonality. "Given the uncertain outlook, a cautious approach is warranted, and investors may consider exiting their holdings, but long-term investors with high-risk capacity may hold their position by keeping the stop loss," Shivani Nyati said. Mudaraddi of StoxBox had predicted a robust listing, estimating over 40 premium to the issue price of Rs 280.

Read More: Credo Brands Marketing (Mufti) IPO subscribed 51.8 times, retail portion booked 19.9 times on final day

The apparel brand operates 1,773 retail outlets across India as of May 31, 2023. These include 379 exclusive brand stores, 89 large format stores and 1,305 multi-brand stores.

After lukewarm response to its Rs 100-crore public issue, the RBZ Jewellers debut mirrored pre-listing whispers. "This lacklustre listing reflects cautious investor sentiment towards the company, despite its strengths. While RBZ Jewellers possesses strong fundamentals and a fair valuation on the surface, the significant risks cannot be overlooked. The flat listing serves as a stark reminder of the potential pitfalls associated with gold price volatility, client concentration, informal artisan arrangements, and intense competition. Thus, investors are suggested to exit their positions," Nyati said after the shares began trading.

Some major risks for the company include not having exclusive or fixed supply arrangements. Any major disruption to the timely and adequate supplies of raw materials could adversely affect its business, results of operations and financial condition. Volatility in the market price of gold too has a direct bearing on the financial conditions of the company and may be subject to hedging losses and currency risks.

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.