Popular Vehicles share price nosedives after listing at a discount. Buy, hold or exit?

Stock market today: Popular Vehicles share price today listed on BSE and NSE in a special pre-open session. Popular Vehicles share price today opened on BSE at ₹292 apiece whereas, on NSE, Popular Vehicles share price is listed at ₹289.20 per share. After the discounted listing of JG Chemicals IPO, RK Swamy IPO, and Gopal Snacks IPO, Popular Vehicles and Services IPO is the fourth straight mainboard IPO that is listed at a discounted price. However, the newly listed stock added more salt to the wounds of Popular Vehicles share allottees as the stock further went down after the discounted listing. On BSE, Popular Vehicles share price made an intraday low of ₹262.90 apiece while on the NSE, it made an intraday low of ₹262.40 per share. While making this intraday low, Popular Vehicles share price corrected to the tune of 6.50 percent against the listing price.

According to stock market experts, Popular Vehicles share price may see more downside if it fails to keep its current low sacrosanct support. So, allottees can hold the scrip maintaining stop loss a little above today's low or say at around ₹265 apiece and exit around ₹295 apiece level, if they have applied for listing gain only. However, a medium or long-term investor can take a call based on the investment goal, provided ₹265 stop loss doesn't trigger.

Popular Vehicles share price outlook

Advising Popular Vehicles shareholders to hold the newly listed stock, Parth Shah, Research Analyst at StoxBox said, "Popular Vehicles and Services Ltd offers fully integrated services through its authorized service centers that contribute to higher-margin business at each of the dealerships and help mitigate the cyclicality that has historically impacted some elements of the automobile sector. Supporting the growth of the automobile industry, dealerships form an intrinsic part of the industry, playing the role of an intermediary between customers and manufacturers. Therefore, keeping in mind the above factors and numerous demand drivers such as growth in new PV sales, rise in average vehicle prices, rising financial penetration, and digital technology, we remain positive on the automotive dealership business in India. Therefore, we suggest that the market participants who have been allotted the shares hold them for a medium to long-term horizon."

Speaking on Popular Vehicles share price outlook, Arun Kejriwal, Founder of Kejriwal Research and Investment Services said, "Popular Vehicles shares has seen some buying at lower levels. However, I believe that if this newly listed stock breaches its current lower levels then there can sharp and deep downside in the stock. So, those who have been allotted Popular Vehicles shares are advised to maintain a stop loss around ₹265 and wait for further upside. Those, who applied for listing gain only can exit around the upper price band whereas medium to long-term investors should take a call based on their fixed targets. However, after the discounted listing, one must maintain a strict stop loss at ₹265 apiece level."

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.