Dee Development Engineers share price extends gain after strong debut. Buy, sell or wait?
Stock market today: Dee Development Engineers share price was listed on the BSE and NSE at a bumper premium against its issue price of ₹193 to ₹203 per equity share. The stock opened at ₹325 per share on the BSE and at ₹339 per equity share on the NSE, delivering around 65 percent.
The upward trend continued as the stock climbed to an intraday high of ₹365.70 on both exchanges. Stock market experts have noted that the stock is quoting over a 50 percent premium.
They advise those who want to hold the stock for more gains to book 50 percent profit and hold the rest.Speaking on the fundamentals of Dee Development Engineers shares, VLA Ambala, SEBI-registered Research Analyst and Founder of Stock Market Today, said, "Despite a dip in its net worth from ₹448.50 crore in 2021 to ₹413.70 crore in 2023 and increased borrowing from ₹257.17 crore to ₹352.62 crore in the same period, the company's revenue rose to ₹614.32 crore in March 2023. It is worth noting that the IPO funds will primarily address working capital needs and debt repayment." VLA Ambala added that those who missed out could consider buying in the secondary market if there is a dip.Advising Dee Development Engineers shareholders to hold the scrip for the medium to long term, Prathamesh Masdekar, Research Analyst at Stoxbox, said, "The company's revenue has grown at a CAGR of 10% between FY21-23.
The company has initiated the capacity expansion plans mentioned above, which will help it improve its future financial performance. Further, the company is deleveraging its balance sheet by reducing debt.
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