The newly-listed Clean Science and Technology share price tag surged more than 9.5 per cent to Rs 1,736 apiece intraday on BSE, even as BSE Sensex and Nifty 50 tumbled almost a per cent. The stock saw the listing at more than 98 per cent premium to IPO price tag. As Clean Science stock jumped almost 10 per cent today, analysts see at least 20 per cent more rally to Rs 2073 apiece in the stock. In bulk offers on Monday, Nomura India Investment Fund Mother Fund – The MTBJ AC Nomura India Investment Fund purchased 10 lakh equity shares of Clean Science and Technology at Rs 1,715.33 per share on the NSE.
Analysts say Clean Science and Technology stock recovered smartly from the prior low as sturdy fundamentals and debt-cost-free stocks will now be in demand as threat appetite requires a beating. “Technically, a close above Rs 1,755 should lead to targets of Rs 1,877 and Rs 2,073. While Rs 1,630 should act as strong support,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told TheSpuzz Online.
Upon listing, Clean Science and Technology has joined listed market peers such as Vinati Organics Limited, Fine Organic Industries Limited, Atul, SRF, Navin Fluorine, and PI Industries. Its Rs 1,546-crore IPO was subscribed 93.41 instances, and was sold at a price tag band of Rs 880-900 a share. Clean Science and Technology stock is anticipated to see healthier traction ahead due to niche presence in specialty chemical space. “The IPO was valued at 42.2x of FY21 earnings, which looked to be reasonably priced. However, peers like Vinati Organics and Fine Organic Industries trade at 75x FY21 earnings, which along with superior RoE at 37% offer valuation comfort for the company,” Binod Modi, Head Strategy, Reliance Securities, told TheSpuzz Online.
In traded volume terms, 2.84 lakh shares have exchanged hands on BSE, although a total of 44.54 lakh units on NSE, so far in the day. The sentiments for newly listed stocks are anticipated to stay upbeat as extended as the secondary marketplace remains buoyant, stated an analyst. “Investors are looking beyond the second wave’s immediate hit to demand, focusing instead on India’s alluring long-term fundamentals. The government plans to boost medium-term growth with federal spending,” Likhita Chepa, Senior Research Analyst, CapitalBy means of Global Research, told TheSpuzz Online. Chepa also added that liquidity is readily obtainable, and interest prices are low. Therefore, these variables have come collectively to increase investor self-assurance and persuade companies that the moment is appropriate to go public.
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