Plaza Wires lists with 55% premium: Should you buy or hold the stock or book profit?

Plaza Wires IPO received a strong response from investors and witnessed the highest-ever bidding by retail buyers

After Plaza Wires made a strong debut, listing at over 55 percent premium on bourses, analysts now recommend booking profits. The stock opened at Rs 84 on the BSE, as against the IPO price of Rs 54. On the NSE, the listing premium was slightly lower by 40.74 percent at Rs 76.

The Plaza Wires IPO received a strong response from investors and recorded the highest-ever bidding by retail buyers in the mainboard space. The issue was subscribed 161 times during September 29 to October 5. Retail investors bid 374.81 times the allotted quota, qualified institutional investors 42.84 times, and high net-worth individuals 388.09 times.

Follow our live blog for all the market action

The Rs 71.28-crore IPO consisted of only a fresh issue of 1.3 crore shares and there was no offer-for-sale component. On the financial front, Plaza Wires net profit jumped 26 percent to Rs 7.51 crore for the year ended March 2023 from Rs 5.95 crore a year ago. Revenue from operations grew 3.2 percent to Rs 182.4 crore from Rs 176.7 crore in the same period.

What do the brokerages have to say about the stock? Should you buy, sell or hold Plaaza Wires? Let's take a look:

Book profits on the listing day: StoxBox

Anushi Vakharia, a research analyst at StoxBox, maintains a cautious stance and continues to be wary of the long-term trajectory of the business, considering that the company operates in a highly fragmented industry with several large players and bears increased volatility in its key raw material prices as well.

“We would advise investors to book profits on the listing day and adopt a wait-and-watch approach for gauging the long-term outlook of the business,” Vakharia said.

Also Read: Strong start: Plaza Wires lists at 56% premium to IPO price

Investors may consider booking profit: Swastika Investmart

According to Shivani Nyati, head of wealth at Swastika Investmart Ltd, Plaza Wires has had a strong financial performance, with consistent revenue and profit growth in recent years.

“Investors may consider booking profit after this listing, while those who are looking for a long-term investment should maintain a stop-loss of Rs 68,” she said.

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.