HP Adhesives shares list at premium. Should you buy, sell or hold?

HP Adhesives shares made a moderate debut today at Indian primary markets as shares of the company got listed on NSE at ₹315 apiece levels, ₹41 higher from its issue price of ₹274 per equity share. According to stock market experts, those who applied for the public issue keeping short term perspective can hold the stock with stop loss at ₹300 whereas those who have a long term view can hold the stock for 3-month target of ₹500 levels. They went on to add that fresh buyers can buy the counter at current market price for the same 3 months target.

Advising HP Adhesives share allottees to hold the counter further; Manoj Dalmia, Founder & Director at Proficient Equities Limited said, "The company has made it clear that raised amount from the public issue will be used for capacity expansion and improving the customer base. HP Adhesives Limited can be said as a smaller version of Pidilite as it is the only competing peer. It has an average EPS of ₹3.19 and is valued at P/BV 10.38. We recommend hold on a long term basis and accumulate on dip."

Speaking on HP Adhesives share listing; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "There is a potential for the company to grow exponentially in the upcoming years, and the CAPEX will guide growth. The company debuted at ₹315, a 15 per cent premium over the issue price of ₹274. The investors who got allotment are advised to keep the stop loss of ₹300 and maximise their listing premium."

On HP Adhesives share price outlook; Ravi Singhal, Vice Chairman at GCL Securities said, "Those who got HP Adhesives shares through allotment process are advised to hold the stock for at least 3 months as the stock is expected to go up to ₹500 apiece levels in this period. The company is considered small version of Pidilite and it controls around 20 per cent of the unorganised adhesives market. So, its fundamentals are quite strong and those missed to get shares via allotment can buy the stock at current levels for 3-month target of ₹500. However, fresh buyers must maintain stop loss at ₹270 levels."

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