Should you hold Uma Exports after a better than expected listing?


New Delhi: Surprising Dalal Street, Uma Exports pulled off a strong debut on the bourses today by listing at Rs 80, a premium of 18 per cent, on BSE. Following the listing, the scrip zoomed another 5 per cent to Rs 84, taking the overall gains to 24 per cent over the issue price of Rs 68.

However, post listing market experts are suggesting investors to book profits, either fully or partially, and look for better opportunities.

Saurabh Joshi, Research Analyst at Marwadi Financial Services, said, “We had assigned avoid rating to this IPO as the company operates in a competitive environment with a low margin profile.” He recommended investors to exit as the stock is trading at a good premium to its issue price.

Astha Jain, Senior Research Analyst at Hem Securities, said those who got allotment should book partial profit at current price and hold remaining with stop loss at Rs 75.

For the period ended on September 31, 2021, the company reported a profit after tax (PAT) of Rs 8.97 crore with a total income of Rs 523.95 crore.

Uma Exports has raised Rs 60 crore via its initial stake sale, which was open for subscription between March 28-30 in the range of Rs 65-68 apiece.

Incorporated in 1988, Uma Exports is engaged in trading and marketing of agricultural produce and commodities in India from Canada, Australia and Myanmar. It has expanded its business in Malaysia, UAE, Sri Lanka, and Bangladesh.

It deals in sugar, spices like dry red chillies, turmeric, coriander, cumin seeds, food grains like rice, wheat, corn, sorghum and tea, pulses and agricultural feed like soybean meal and rice bran de-oiled cake.

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