DOMS Industries IPO Listing: Stellar debut on the bourses, DOMS share price lists with 77% premium. Buy, sell or hold?
DOMS Industries share price made a blockbuster debut on the bourses today. On NSE and BSE, DOMS Industries share price today was listed at ₹1,400 per share, 77.2% higher than the issue price of ₹790. DOMS share price extended gains following its listing. Currently, at 10:48 IST, DOMS Industries share price has slightly slipped into the red zone. DOMS IPO share price is trading 0.7% lower at ₹1,390.40 apiece on NSE.
The DOMS share price opened at ₹1,400, which is significantly more than the grey market premium, according to Arun Kejriwal, the founder of Kejriwal Research and Investment Services. GMP was speculating about +500 at the time, or about ₹1,300, and the share opened at ₹1,400. Today’s market is strong, and there is no correction. The market has no adverse impacts. Thus, the share performs above and beyond expectations and its done well. With such gains, one must exercise extreme caution, though, as we need new purchases to ensure the price is sustainable.It must therefore be purchased by someone for at least ₹1,400.
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Furthermore, Kejriwal noted that the share price of Shelter Industries in India opened at a level below the price of the grey market and has since declined even further in a bull market.
DOMS Industries share price outlook
DOMS Industries made its debut at ₹1,405, or 77% above its issue price, according to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd. Its robust manufacturing, varied product portfolio, and strong brand put it in a good position for long-term growth. Strategic alliances and multichannel distribution help it reach a wider audience. In recent times, DOMS has exhibited remarkable financial expansion, thereby reinforcing its market standing and prospective growth.
“The issue came at a P/E of 43x, which was fully priced. Thus, considering such a premium on listing, allottees who applied for the public offering for listing premium are advised to book profit however investors with long-term view may hold it by keeping a stoploss at ₹1,260. A fresh buy will not be recommended at such a high level,” said Nyati.
Investors should book at least 50% of profits on the day of listing itself, according to Mahesh M. Ojha, AVP of Research & Business Development at Hensex Securities Pvt Ltd. The remaining portion can be held for long-term investment.
“The stationery industry leader DOMS Industries on its debut delivering stellar returns of 77.79% to its investor. The company offers wide range of products with innovation & differentiation. Company portrays traits of rapid growth, strong brand recall, robust manufacturing infrastructure, efficiency driven by focused on backward integration & strong financials,”said Ojha.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 20 Dec 2023, 11:09 AM IST
