IKIO Lighting shares gained for the second day in a row on June 19 after a blockbuster debut on June 16. At 10.30 am, the stock was trading at Rs 432.95 on the National Stock Exchange, up 7.2 percent from the previous close amid trading volumes of 84 lakh shares.
The stock has gaine 51 percent from its issue price of Rs 285.
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On June 16, Quant Mutual Fund via Quant Quantamental Fund acquired 6.01 lakh shares in the company and another 6.02 lakh shares were bought by its Quant Multi Asset Fund, totalling to 12.03 lakh shares or a 2.15 percent stake.
IKIO Lighting is a fully integrated original design manufacturer (ODM) in the LED lighting industry. It mainly caters to the premium lighting segments with Signify (Philips) being one of its largest clients.
After the run-up, analysts believe all positives may have already been captured in the price now. Client concentration risk, with Signify Innovations India Limited contributing over 70 percent to the overall revenue, should be watched out for, they added.
Astha Jain, Research Analyst, Hem Securities, said investors should wait for the prices to dip.
The company does not have a comparable peer but its valuation can be benchmarked against electronic manufacturing services providers. IKIO’s valuation lies in the middle among peers namely Dixon Technologies, Amber Enterprises, Syrma SGS Technology and Elin Electronics which are trading at a P/E of 92.6x, 46.8x, 57.2x, 26x, respectively.
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