ASK Automotive shares debut at 8% premium. Should you buy, sell or hold?

economictimes.indiatimes.com:

ASK Automotive shares should do it from a medium-to-long-term perspective, a couple of analysts recommended. The stock made a modest debut on the exchanges at a premium of nearly 8% today.

On BSE, it debuted at Rs 304.90 and on NSE at Rs 303.30.

The stock extended gains during the session and was trading 11% above the issue price. It hit an intraday high of Rs 314.50.

SBI Securities and Anand Rathi had recommended a ‘Subscribe’ view on the IPO with a long-term horizon.

Following the listing today, expert Shivani Nyati, Head of Wealth at Swastika Investmart recommended a hold on the counter with a medium-to-long-term view while suggesting a stop loss at Rs 290.

The IPO came at a PE valuation of 45.63X, which she said was reasonably priced.
With a robust production model and a technology and innovation-based manufacturing process, the company shares strong relations with all the top two-wheeler manufacturers in the country, she added.

ASK Automotive is a market leader in brake-shoe and advanced braking (AB) systems for two-wheelers (2W) in India with approximately 50% share in FY23 in terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket (IAM), on a combined basis, SBI Securities said as it valued the company at FY23PE multiple of 45.2X and EV/EBITDA of 24.8X at the upper price band on post-issue capital.

Echoing a similar sentiment, Anand Rathi said that it believes that the valuation of the company was fairly priced.