Market erases all gains, Nifty falls below 23,300
At close, the Sensex was down 422.59 points or 0.54% at 77,155.79, while the Nifty fell 168.60 points or 0.72% at 23,349.90.
CarTrade Tech Ltd made a weak debut on the stock market on Friday and got listed below the issue price of Rs 1,618 per share.
On the BSE, it was listed at Rs 1,600 per share.
Around 12.40 p.m., shares of the company were trading at Rs 1,552.05, lower by Rs 47.95 or 3.00 per cent from its opening price and Rs 65.95 or 4.08 per cent from its issue price.
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Yash Gupta, Equity Research Associate, Angel Broking: “We suggest investors who have received the allotment hold the share for a short time as we expect the stock to show some recovery in the near future. We are not recommending investors to do fresh buying in the stock.”
“Currently, the company is trading at a price to earnings of 68 times, the company has reported improvement in financial performance in the last 3 years. In the times of Covid pandemic, company’s net profit has increased from Rs 31 crore in FY2020 to Rs 101 crore in FY2021,” Gupta said.
The initial public offering (IPO) of CarTrade Tech had received a robust response from the investors, with issue garnering 20.3 times subscription.
The company is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. Its platforms operate under several brands – CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz.
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