AGS Transact Technologies shares: Should you sell, hold or buy after flat debut?

AGS Transact Technologies shares made a flat debut in stock market today as it opened at ₹176 at NSE and BSE, delivering near 0.9 per cent premium to its shareholders. After this tepid opening, AGS Transact Technologies share price went northward up to its intraday high of ₹181.85 apiece levels on NSE triggering profit-booking. The stock soon started falling and made its intraday low of ₹166.10 on NSE. Currently, AGS Transact Technologies share is trading at ₹170 apiece levels (at 11:06 AM on NSE).

According to stock market experts, AGS Transact Technologies shareholders are advised to book profit and exit the counter if they have short-term time horizon. However, those who have long-term view, can hold the counter as company’s product portfolio and technological capacities augur sustained profitable business model.

On suggestion to AGS Transact Technologies shareholders who have short-term view; Santosh Meena, Head of Research, Swastika Investmart Ltd said, "The company is one of India's leading Omni-channel payment solution providers with a strong network. However, the government's focus on digital payments will further decrease the use and availability of cash can have an adverse effect on business activities. The IPO got listed at ₹176, which is the same as the issue price. We had an avoid rating to the IPO as the government focuses on digitalization. The investors who got the allotment are advised to book the profit and look for other investment opportunities."

Echoing with Santosh Meena's views; Ravi Singhal, Vice Chairman at GCL Securities said, "For short-term investors, we advise exit on any bounce and look at other better options like FINO Payments Bank as government of India is focusing aggressively on the digital payment solutions. However, it's is still long way to go for complete digital payment model getting implemented in India. So, those who have long-term view should remain invested in the counter as company's long-term business model is expected to remain profitable."

Advising long-term investors to hold the counter; Mohit Nigam, Head - PMS, Hem Securities said, "AGS Transact Technologies is one of the leading payment solution provider and a big player in ATM management space with strong clientele and good network all over India with many peers and high competition. We advise investors to hold the company for long term for good returns. Seeing company’s product portfolio and technological capacities, we think it will be a good investment option for long term."

AGS Transact Technologies shares witnessed a flat listing today as the stock started trading at ₹176 on the NSE, up 0.9 per cent as compared to its upper price band of ₹175 per equity share. On the BSE, the stock made its debut at ₹176 per share.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.