Paradeep Phosphates: Should you book profit or hold it for long-term?

However, later it was trading at Rs 45 at 11.45 am on Friday.

On National Stock Exchange (NSE), the stock got listed at Rs 44, a premium of 5 per cent, over its issue price of Rs 42. The counter was listed at a premium of 4 per cent at Rs 43.55 on BSE.

The majority of the brokerages have a positive view on the counter as they suggested investors to hold the stock from a long-term perspective.

Santosh Meena, Head of Research,

, said the company’s tepid listing can be attributed to current market sentiments and a lukewarm response from investors. The issue was reasonably priced and interested investors may accumulate the shares post listing for the long term, he added while suggesting investors to maintain a stop loss at Rs 40.

Paradeep Phosphates raised Rs 1,501.73 crore via its primary stake sale, which was open for subscription between May 17-19 as the company sold its shares in the range of Rs 39-42 apiece.

The issue was overall subscribed 1.75 times, with the quota for QIB investors getting over three times bids. The retail portion was booked 1.37 times, whereas the HNI portion fetched only 82 per cent bids.

Saurabh Joshi, Research Analyst, Marwadi Financial Services, said the listing was on expected lines. He recommended investors to hold the stock for a medium to long term perspective on account of its conservative valuations compared to peers.

“The encouraging forecast of a normal monsoon this year augurs well for the overall fertilizer Industry,” he added. “It is well-positioned to capture favourable dynamics of the Indian fertilizer Industry.”

Incorporated in 1981, Paradeep Phosphates is the second-largest private-sector manufacturer of non-urea fertilizers and Di-Ammonium Phosphate(DAP) in terms of volume sales for the nine months ended December 31, 2021.

The non-urea fertilizers manufacturer is engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers, under the brand names Jai Kisaan-Navratna and Navratna.

Ajit Mishra, VP- Research,

Broking, suggested that investors should hold the stock for the long-term as there is no near-term headwind for the company. “One should not hurry to book profits,” he added.

On the other hand, Amarjeet Maurya, AVP – Mid Caps, Angel One said that the company is trading in line with its peers. “The company is likely to face headwinds in terms of cost pressures due to recent increase in raw material prices, which leaves little room for upside,” he said.

His brokerage firm had a neutral rating on the issue.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)