Divgi Torqtransfer Systems managed to outperform equity benchmarks and closed with 2.6 percent gains on March 14, its first trading day on the bourses.
The stock rebounded above its issue price of Rs 590 after an initial couple of hours of weak trade and managed to hold the same price for the rest of the session. It closed at Rs 605.15 on the BSE, after hitting an intraday high of Rs 615.75 and a low of Rs 557.20, whereas the BSE Sensex lost six-tenth of a percent, continuing a downtrend for the fourth straight session.
Divgi traded with a volume of 3.43 lakh shares on the BSE, while the trading volume on the NSE was 34.14 lakh shares.
Most experts advised holding the auto ancillary company stock given the strong business growth outlook, consistent financial performance, healthy long-term relationship with clients, and reasonable valuation.
Divgi is one of the few suppliers in India having the capability to develop and provide system-level transfer cases, torque couplers, DCT solutions and transmission systems for electric vehicles (EVs) across a wide array of automotive vehicles and geographies, with leadership across select product categories.
"The company's strategically located manufacturing facilities are capable of producing high-precision components meeting system-level design intent. Also, the company enjoys long-term relationships with marquee domestic and global customers along with consistent financial performance with a focus on innovation and R&D capabilities," said Astha Jain, Senior Research Analyst at Hem Securities.
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Manish Chowdhury, Head of Research at Stoxbox also advised investors to hold the stock.
"The company has multiple levers in place to chart a higher growth trajectory such as strong promoter background, robust business growth outlook, good margin profile and a reasonable valuation," he said.
Divgi raised Rs 412.12 crore via public issue last week, which was the first IPO in the current calendar year. The price band was Rs 560-590 per share.
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