Home Book trading Uma Exports shares are quoted at more than 10% premium. Should...

Uma Exports shares are quoted at more than 10% premium. Should you hold, sell or buy?

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Shares of Uma Exports are listed today on NSE and BSE, offering a premium of around 11% to its beneficiaries. On NSE, Uma Exports shares debuted at 75 levels each and continued to rise to its intraday high of 79.80 per share. On the BSE, the stock hit its intraday high of 84 per share, offering a premium of around 20% to the beneficiaries who hold the share after listing.

According to stock market experts, the Uma Exports action made a positive start, offering up to 20% premium to its beneficiaries. Therefore, those who got the allocated stock during the stock allotment are expected to profit and exit as the stock has been listed in the “T” category where a strong downward movement can be seen after the triggering of profit reservation. They also said to avoid taking new positions in the stock at current levels.

Advising investors to make profits on Uma Exports shares; Avinash Gorakshkar, head of research at Profitmart Securities, said: “The stock is trading around 84 levels on the ESB, which means a bounty of around 20% is available to lucky recipients. Therefore, one has to account for the profits in the stock because there was very little margin available for investors.”

Why reserve profits in the stock and avoid taking a new position at the counter; Astha Jain, senior research analyst at Hem Securities, said: “The stock has been listed in the ‘T’ category and there may be a sharp downward move once profit booking triggers in the scrip. So my advice to beneficiaries is to reserve profits immediately and those who failed to obtain Uma Exports shares at allocation should avoid taking a new counter position.”

Ravi Singh, Vice President and Head of Research, Share India, said: “Given the high debt in its portfolio and low margin profile, we recommend investors avoid Uma Exports shares at current levels. Beneficiaries are advised to book profits and exit as expensive valuations of the business do not offer much value to investors.”

Shares of Uma Exports have been listed in the “T” category and will be transferred from the Trade for Trade segment (T group) to the Rolling segment effective Monday, April 25, 2022.

Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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