Uma Exports shares list at above 10% premium. Should you hold, sell or buy?

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Uma Exports shares today listed on NSE and BSE delivering around 11 per cent premium to its allottees. On NSE, Uma Exports shares made their debut at 75 apiece levels and went on to ascend to its intraday high of 79.80 per share. On BSE, the stock made its intraday high of 84 per share, delivering around 20 per cent premium to the allottees who hold the stock post-listing.

According to stock market experts, the Uma Exports share has made a positive debut, delivering up to 20 per cent premium to its allottees. Hence, those who got the stock allotted during share allocation should book profit and exit as the stock has been listed in ‘T’ category where sharp downside movement can be witnessed after the profit-booking trigger. They also said that one should avoid taking fresh position in the stock at current levels.

Advising investors to book profit in Uma Exports shares; Avinash Gorakshkar, Head of Research at Profitmart securities said, “The stock is trading around 84 levels on BSE, which means around 20 per cent premium is available to the lucky allottees. Hence, one should book profit in the stock as there was very little margin available to the investors.”

On why one should book profit in the stock and avoid taking fresh position in the counter; Astha Jain, Senior Research Analyst at Hem Securities said, “The stock has been listed in ‘T’ category and there can be sharp downside movement once the profit-booking triggers in the scrip. So, my advice to the allottees is to book profit immediately and those who missed to get Uma Exports shares during allocation should avoid taking any fresh position in the counter.”

Ravi Singh, VP & Head of Research, Share India said, “Considering the high debt in its book and low margin profile, we recommend investors to avoid the Uma Exports shares at current levels. Allottees are advised to book profit and exit as expensive valuations of the company doesn’t offer much value to the investors.”

Uma Exports shares have been listed in ‘T’ category and it will be be transferred from Trade for Trade segment (T Group) to Rolling segment with effect from Monday April 25, 2022.

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

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