Zinka Logistics Solutions share price dips after positive debut. Buy, sell or hold?

Stock market today: Zinka Logistics Solutions shares had a positive listing on the BSE and NSE, but the newly listed stock came under sharp selling pressure and slipped below the upper price band of the public offer. Zinka Logistics Solutions share price opened on the BSE at ₹279.05 apiece and touched an intraday low of ₹260.10 per share. Likewise, Zinka Logistics Solutions share price was listed on the NSE at ₹280.90 per share and touched an intraday low of ₹260.20 apiece.

According to stock market experts, Zinka Logistics Solutions' strong network effects and position as a leading platform might have played an essential role in its positive debut on Dalal Street. However, they said the company's previous challenges must be addressed. They advised Zinka Logistics Solutions shareholders to hold the stock with strict stop loss at ₹255 apiece.

Zinka Logistics Solutions share: What next?

Advising Zinka Logistics Solutions shareholders to hold the scrip for the long term, Shivani Nyati, Head of Wealth at Swastika Investment, said, "The company's strong network effects and position as a leading platform in the logistics industry have likely contributed to the positive listing. However, investors should remain cautious due to the company's past financial challenges, including losses, negative cash flow, and ongoing legal challenges. While the positive listing is encouraging, investors must conduct thorough due diligence and assess the company's long-term growth prospects."

Echoing with Shivani Nyati's views, Sagar Shetty, Research Analyst, StoxBox, said, “The company is well-positioned to capitalize on the market growth opportunities with its digital products, which can tackle challenges and inefficiencies and enhance value for truck operators. The company is also poised to benefit from building trust and expanding its customer base through a robust sales and service strategy. Its strategic market expansion and continuous product development will further enhance its market presence and profitability.”

"Overall, we believe that participants who have been allotted the shares hold it from a medium to long-term horizon, given the company's robust growth potential," the StoxBox expert added.

However, Shivani Nyati advised fresh investors to wait for some time, saying, “We do not recommend making a fresh entry at this point. For those already holding the stock, a stop-loss at ₹255 might be considered a risk management strategy.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.