Mamata Machinery shares rise nearly 160% on listing day; should you buy, sell or hold?

Mamata Machinery IPO, priced in the range of Rs 230-243 per share, garnered strong interest from retail, institutional, and high-net-worth investors.

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26 Aug, 2025 12:21

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Mamata Machinery shares made a remarkable stock market debut on December 27, Friday, listing with a huge premium of nearly 147 percent, against the issue price of Rs 243.

On the BSE, shares of the firm listed at Rs 600, a jump of 146.91 percent. It further zoomed 159.23 percent to Rs 629.95. The stock began the trade at Rs 600 on the NSE. The firms' market valuation stood at Rs 1,550.17 crore.

While conservative investors may book profits at listing, analysts advise long-term investors to hold the stock due to its growth potential and reasonable valuations.

Gujarat-based packaging machinery manufacturer Mamata Machinery’s Rs 179-crore initial public offering was subscribed a whopping 195 times despite a subdued stock market last week. The IPO priced in the range of Rs 230-243 per share garnered strong interest from retail, institutional and high-net-worth investors.

Analysts are optimistic about the company's growth prospects, citing its extensive product portfolio, global footprint, and leadership in packaging machinery technology. They recommend holding Mamata Machinery shares for the long term on the back of the company’s investments in research and development (R&D) and continuous innovation.

Check all IPO news here

Mamata Machinery, which operates under the brand names 'Vega' and 'Win’, offers end-to-end manufacturing solutions for the flexible packaging industry. Its comprehensive product range caters to both packaging and non-packaging sectors, solidifying its presence across the entire value chain.

Reasonable valuation, strong market presence

Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi Shares, said that the company’s valuation is reasonable. "At the upper price band, the company is valued at a price-to-earnings ratio of 16.6x, with a post-issue market capitalisation of Rs 5,979 million and a return on net worth of 27.4% based on FY24," he said.

"We find the valuation reasonable and recommend investors to hold Mamata Machinery stock for the long term, given its healthy financial outlook," Solanki added.

Prashanth Tapse, Senior Analyst at Mehta Equities, expects a robust debut for Mamata Machinery stock, forecasting potential gains of up to 100 percent over the IPO price. "We advise conservative investors to book profits if prices exceed our expectations. For long-term investors, however, the recommendation is to hold despite short-term market volatility. Non-allottees should consider buying on dips post-listing," he said.

Prathamesh Masdekar, Research Analyst at StoxBox, suggests holding the stock due to Mamata Machinery’s market presence. "Investors allotted shares should hold from a medium- to long-term perspective. The company’s strong international presence, with manufacturing facilities in India and the US, coupled with its innovative capabilities and focus on customisation, enhances its growth potential," he said.

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