Nykaa stock price: Closing 14 companies for share sale to expire in 2022; Analysts remain bullish on major players

New Delhi: Several Dalal Street debuts, listed on stock exchanges in the last two months of 2021, are likely to be the focus of Dalal Street for the rest of the current calendar year.

The mandatory lock for equity investors in these 14 main board companies, which were listed in November-December 2021, expires for the remainder of the 2022 calendar year.

The list includes startup players and traditional companies from financial services, industrial mining, specialty products, pharmaceuticals, real estate.

Among the registered entities are new age companies such as FSN E-Commerce Ventures (Nykaa),

(), (), and , , , , Tarson products, , , , Supriya Lifesciences and HP adhesives.

These companies collectively raised about Rs 44,760 crore from the primary market during the period, with Paytm (Rs 18,300 crore) being the largest, while Sigachi and HP Adhesives (Rs 130 crore each) were the least among the shares.

Closed chartETMarkets.com

Source: Nuvama Wealth Management

In terms of listing pop, not many of the stocks have rewarded investors with the likes of Paytm and Shriram Properties down 27% and 16%, respectively, by the end of day one. However, Sigachi rose 296% and Nykaa rose 96% on the first day.

In terms of total returns so far, Fino Payments Bank, PB Fintech and Paytm have declined by 60%-70% each from the issue price. On the other hand, Go Fashions and Sigachi Industries are 93% and 63% higher in their issue prices.

Half a dozen companies – Nykaa, Fino Payments, PB Fintech, Paytm, Sigachi Industries and

– are trading more than 50% from their 52-week highs, while only two names – Sapphire Foods and Go Fashions – have rallied more than 50% from their 52-week lows.

Brokerage firms and market analysts have mixed views on these stocks, but the majority of them have a buy rating from one brokerage or the other.

Abhilash Pagaria, Head of Alternative & Quantitative Research, Nuvama Wealth Management, said most of the stocks will continue to be under pressure in the coming weeks.

“Many pre-stock investors who entered these names at much lower levels will be looking to trade some stakes when the close opens,” he added. “We recommend that investors buy Nykaa and Sapphire on a staged basis as we see value in them.”

Global brokerage Goldman Sachs maintained a ‘buy’ rating on Paytm with a target price of Rs 1,100. September’s quarter numbers were better than estimates, both top line and EBITDA.

β€œThe global investment bank raised estimates for Paytm on the back of results. It sees a steady increase in profitability as a key driver,” it added.

On Nykaa, Dolat Capital has a buy rating with a target price of Rs 1,420, while HDFC Securities has initiated coverage on the stock with a ‘sell’ rating and a target price of Rs 800.

Wealth Research had recommended SJS Enterprises as a buy with a target price of Rs 590, while Emkay Global pegs Sapphire Foods at Rs 1,650 with a buy rating. has a buy rating on both PB Fintech and Go Fashion (India) with a target price of Rs 550 and Rs 1,600, respectively, while the brokerage has a hold rating on Tarson Products with a target price of Rs 755.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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