Tega Industries' shares had a strong listing as the stock closed with a whopping 60 percent premium over issue price despite weakening market sentiment on December 13.
The stock opened at Rs 753 on the BSE, rising 66.2 percent over the issue price of Rs 453 per share. Tega touched an intraday high of Rs 767.10 and a low of Rs 711.50, before settling at Rs 725.50, up 60.15 percent.
On the National Stock Exchange, it touched a day's high of Rs 767.70 and a low of Rs 712.25, before closing with 60.28 percent gains at Rs 726.05.
Tega traded with a volume of 1.66 crore equity shares on the NSE, and 10.84 lakh shares on the BSE.
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Most of the experts advised holding the stock for the long term given the growth potential it has.
"Tega Industries is debuting the secondary market on expected lines. The fundamentals of the company are very sound and the outlook for the industry is also bullish. Therefore long-term investors should hold this company into their portfolio," said Santosh Meena, Head of Research at Swastika Investmart.
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The company had raised Rs 619 crore through its public issue at an upper price band of Rs 453 per share. It was a complete offer for sale issue, so the company did not get any money from the offer.
Kolkata-based Tega Industries is a leading manufacturer and distributor of specialised ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining and bulk solids handling industry, on the basis of June 2021 sales. Globally, it is the second largest producer of polymer-based mill liners, on the basis of revenues.
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Parth Nyati, Founder at Tradingo, feels the company might perform much better going forward if this momentum continues. "New investors can wait for a dip to buy, while long-term investors should hold this stock," he said.
Tega operated its business with 60.42 percent and 59.80 percent material margins and 16.54 percent & 27.86 percent EBITDA margin in the three months period ended June 2021, and FY21, respectively. Its strong market position and entry barriers help it maintain high margins over time.
Further, it has successfully maintained this operational efficiency while completing and integrating acquisitions, joint ventures and strategic alliances, including its acquisitions in Chile, South Africa and Australia. Its repeat business from existing mineral processing sites accounted for 76.28 percent and 74.29 percent of its revenue from operations in Q1FY22 and FY21, respectively.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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