Earlier today, the scrip got listed at Rs 1,008.90 on BSE, a 22.29 per cent premium to its issue price of Rs 825. On NSE, it debuted at Rs 1,009, up 22.30 per cent from the issue price.
Astha Jain of Hem Securities said she had a target of Rs 1,040 for the stock, but it hit a high of Rs 1,057.95 on BSE on Monday itself. At 1 pm, the scrip was trading 20.58 per cent higher at Rs 994.80.
Jain said investors who subscribed to the issue solely to earn listing gains can offload three-fourth of their holdings in KIMS in the Rs 1,000-1,040 range. She said the stock does not look overpriced compared with its peers even at the prevailing valuations and advised long-term investors to retain 50 per cent of their holdings in the stock.
“Those who could not get KIMS shares in the IPO allotment can wait for the stock to correct a bit. For them, Rs 900-950 range can be ideal to enter the counter,” Jain said.
Yash Gupta of Angel Broking said short-term investors should book profit at around Rs 977 level. He recommended long-term investors to book partial profit and hold the remaining quantity, as the company can perform well in the long run.
The stock hit a low of Rs 950 on BSE so far.
“KIMS is trading at EV/Ebitda of 21 times and price to earnings multiple of 37 times, which is cheaper compared with peers. The company has best a return of equity (ROE) of 23.8 per cent and a return on capital employed (ROCE) of 24.8 per cent, among peers,” he said.
Seasoned investor Ashish Kacholia, known for his ability to pick quality midcap and smallcap, had placed an application for over two million shares worth about Rs 180 crore in the initial public offering.
The Rs 2,144 crore IPO was sold between June 16 and 18. It received bids for 5,56,55,046 shares compared with 1,44,13,073 shares on offer. The quota reserved for qualified institutional buyers(QIBs) was subscribed 5.26 times, the one for non-institutional investors received 1.89 times bids while the quota reserved for retail individual investors (RIIs) was subscribed to 2.89 times.
