EMS stock lists at 33% premium over IPO price; should investors hold, sell, or buy more?

EMS Ltd stock was trading at Rs 281.2 on the NSE and Rs 281.4 on the BSE at 11:55 AM.

EMS Ltd made a strong debut on bourses on September 21, listing at a 33.7% premium at Rs 282.05 over the IPO price of Rs 211. The stock was trading at Rs 281.2 on the NSE and Rs 281.4 on the BSE at 11:55 AM. Several analysts have suggested booking profits in EMS stock, while StoxBox has advised to hold the shares for medium to long-term.

Stock Call: Should you buy, sell or hold EMS stock?

Investors may book profit: Swastika Investmart 

“EMS’ listing is a very good listing, even in such a weak market. The company's strong fundamentals and good subscription levels were positive factors. The company has a strong order book and is well-positioned to benefit from the government's focus on infrastructure development. Investors may book profit after this listing; however, those who want to hold it for the long term may maintain a stop loss at Rs 255,” said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.

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Investors may book profits on listing day: Mehta Equities Ltd

“We believe the premium listing is justified on the back of reasonable IPO valuations with healthy revenue visibility of 3.2x of FY2023 revenue followed by a strong industry outlook which gives room for better-than-expected listing gains while we also advise allotted investors to book profits on listing day looking at market mood while risky investors can hold it for long term,” said Prashanth Tapse, Research Analyst, Sr VP Research at Mehta Equities Ltd.

Also Read: Strong debut | EMS lists at Rs 282, over 33% premium to IPO price

Investors may hold stock from medium to long-term perspective: StoxBox

“Most of the company’s projects are World Bank-funded which is the main reason for their robust cash flows/timely payments and no bad debts. The strong performance helps them to take on more projects with the help of internal accruals only. As a result, we remain positive about the company and advise investors who are allotted shares to hold them from a medium to long-term perspective,” said Shreyansh Shah, Research Analyst, StoxBox.

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