Transrail Lighting share price slips below listing price after strong debut. Buy, sell or hold? | Stock Market News

Stock market today: Meeting the market estimates, Transrail Lighting’s share price listed on the Indian bourses delivers around 36 per cent premium to the lucky allottees. Transrail Lighting’s share price opened on the BSE at ₹585.15 apiece, while it opened on the NSE at ₹590 per share mark. At the same time, making such a strong debut on Dalal Street, the newly-listed stock delivered around 36 per cent listing gain to the lucky allottees, who received Transrail Lighting shares through the allotment process. Transrail Lighting shares didn’t stop here only. It touched an intraday high of ₹604 apiece on the BSE and ₹605 per share on the NSE. However, after the profit-booking trigger, the newly listed stock failed to sustain itself at higher levels. Transrail Lighting’s share price is currently oscillating around ₹565 apiece mark, around 3 per cent below the listing price.

According to stock market experts, the company has demonstrated consistent revenue growth and profits. They said that the public issue was offered at attractive valuations, and the stock still looks attractive from a medium to long-term perspective. They advised short-term investors to book profit and exit. At the same time, they suggested medium to long-term investors remain invested, booking partial profit for accumulating at lower levels after the profit-booking trigger. They added that investors who failed to get Transrail Lighting shares during the share allotment process may also buy Transrail Lighting shares at the current market price and maintain a buy-on-dips strategy on every big dip in the stock. However, they strictly maintained that fresh buying is allowed only for investors with medium to long-term views.

Transrail Lighting share price outlook

Speaking on Transrail Lighting share price listing, Shivani Nyati, Head of Wealth at Swastika Investmart, said, “Transrail Lighting Limited is an Indian engineering, procurement and construction (“EPC”) company. Which primarily focuses on power transmission and distribution business and integrated manufacturing facilities for lattice structures, conductors, and monopoles. The company Demonstrated consistent growth in revenue and profitability. The IPO is attractively priced based on its PE ratio. The company made a quiet stock market debut, listing at a significant 36% premium over its issue price of Rs. 432. Those who took part in the initial public offering (IPO) may take listing gains profit.”

Advising medium to long-term investors to remain invested in Transrail Lighting shares, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The company has strong fundamentals, and the stock was offered at attractive valuations. However, the stock still possesses upside potential in the medium to long term. So, those with medium to long-term views can hold the stock, maintaining a buy-on-dips strategy. To minimise one’s risk, one can book partial profit and use that money to add more on big dips after the profit-booking trigger.”

On the suggestion to fresh investors, Arun Kejriwal said, “Fresh investors or those who failed to get company shares through the allotment process can still buy the stock at CMP and add more on every big dip. However, they must have a medium to long-term view while investing in this stock.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.