Allied Blenders and Distillers shares dip after positive debut on Dalal Street. Buy, sell or hold?

Despite weak sentiments in the Indian stock market, Allied Blenders and Distillers shares debited positively in a special per-open session on Tuesday. Allied Blenders and Distillers share price opened on BSE at ₹318.10 per equity share whereas it listed on the NSE at ₹320 apiece, delivering around 14 percent listing gain to the lucky allottees of the mainboard public issue. However, the stock came under the sell-off pressure immediately after the share listing. This was primarily due to weak secondary market sentiments, which were influenced by specific reasons such as global market trends, industry-specific factors, or company-specific issues. According to stock market experts, the newly listed stock has debuted on Dalal Street below market expectations. They advised shareholders to hold the stock for more upside.

Allied Blenders and Distillers share price outlook

Speaking on the outlook of Allied Blenders and Distillers shares, VLA Ambala, SEBI-registered Research Analyst and Founder of Stock Market Today, said, "I recommend holding the profits post-listing and allowing the stock to perform in the secondary market. However, they should avoid averaging to avail attractive results."

For those who have a short-term view on the newly listed stock, Parth Shah, Research Analyst at StoxBox, said, “Over the years, the IMFL segment has recorded sales of 38.5 crore cases in FY23, growing at around 8% YoY, and is expected to reach 145.1 crore cases in volume by FY28. Accompanied by the figures that substantiate industry growth and leveraging its strength in popular segments by carrying out branding, the company is set to tap into the growing demand of IMFL. Also, to maintain the legacy of the brand and company, the company ensures the quality of its products by maintaining oversight and a quality control check at its manufacturing and bottling locations.”

“Accordingly, due to such internal practices and the promising macro situation, the company is set to experience growth in the coming period. However, as the issue seems to be expensive on the valuation front, we would advise the market participants to book profits on the listing day. The high valuation of the stock, which is due to factors such as strong market demand, the company's growth potential, or market speculation, could lead to higher returns if the company performs well, or potential losses if the company underperforms]. This is why we recommend holding or selling the stock.”

Unveiling the investment strategy post-listing, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The stock has listed below the market estimates, which may have happened due to the higher valuations and weak sentiments on Dalal Street. So, those who want to maximize their listing gain are advised to hold the scrip with a trailing stop loss at the upper price band of the public issue.”

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