Stock market today: FirstCry share price extends gain after strong debut. Buy, sell or hold?

Stock market today: FirstCry share price listed on BSE and NSE on Tuesday deals at a premium of around 40 percent, beating the market estimates. FirstCry share price today opened on the BSE at ₹625, and on the NSE, it opened at ₹651 apiece. However, the newly listed stocks didn't end here only. Firstcry shares extended the listing gain further and touched an intraday high of ₹707.70 per share on the NSE and ₹707.05 apiece on the BSE within a few minutes of the share listing. However, the stock couldn't sustain an intraday high and retraced after the profit-booking trigger.

According to stock market experts, FirstCry shares have made a strong debut on Dalal Street and extended their listing gains further. They said that FirstCry share price is trading much higher, from its fair value of ₹550 to ₹575, and advised share allottees to book profits and exit. They said the FirstCry brand parent company, Brainbees Solutions Limited, faces significant challenges, including persistent negative cash flows, regulatory issues, and rising debt.

FirstCry share price target

Speaking on FirstCry share price listing, Akriti Mehrotra, Research Analyst at StoxBox, said, "FirstCry effectively integrates its physical and online platforms, benefiting from strong network effects and efficient operations. However, the company faces significant challenges, including persistent negative cash flows, regulatory issues, and rising debt. In FY24, FirstCry saw a 15% revenue increase to Rs. 6,575.1 crores but reported Rs. 321.5 crores in losses and a substantial rise in debt from Rs. 176.5 crores to Rs. 462.7 crores."

"The funds being raised are for operational purposes rather than debt reduction. Given these factors, the market may reflect initial enthusiasm but does not fully account for the company's ongoing financial difficulties and rising debt. Therefore, while the listing price shows short-term market confidence, the underlying financial challenges suggest a need for caution. We recommend investors allotted shares to book profits and exit their positions for now," the StoxBox expert added.

Expecting sharp selling in Firstcry shares post-strong debut, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, "Firstcry share listing is above the market estimates. The Brainbees Solutions share price was expected to list at around the fair value of ₹550 to ₹575. FirstCry's share price is currently quoted around ₹670 on the NSE. So, some sharp selling is expected in the stock. So, those who got Brainbees Solutions shares during the allotment process are advised to book profit and exit. Medium and long-term investors can review taking the fresh position once the stock comes around its fair value price."

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