FirstCry shares drop 2% amid lock-in expiry concerns, JM Financial sees 46% upside
Brainbees Solutions, the parent company of the FirstCry brand, fell 2.3% on Monday to Rs 457.10 on the BSE, extending a recent losing streak as concerns over an impending pre-IPO lock-in expiry loomed large. Brokerage JM Financial maintained its “buy” rating on the stock but slashed its target price to Rs 667, still implying a robust 46% upside from current levels.
The stock has been under pressure ahead of the February 13 lock-in expiry, which will make nearly 60% of the company’s share capital — over 300 million shares — eligible for trading. This volume dwarfs the stock’s average daily trading volume of around 760,000 shares and has heightened fears of selling pressure.
Shares of Brainbees have fallen 26% over the past three months, underperforming broader markets. The decline has accelerated recently, with the stock losing 6.5% in the last week alone.
Despite the near-term headwinds, JM Financial said it remains optimistic about Brainbees’ long-term prospects, emphasizing its competitive position in the children’s retail market. The firm highlighted that many pre-IPO investors had already realized significant gains during the company’s IPO and that future selling might be driven by portfolio rebalancing rather than concerns over fundamentals.
The brokerage noted that at its current price, the stock trades at a steep 24% discount to peers like Nykaa, based on FY27 EBITDA multiples, making it an attractive accumulation opportunity for long-term investors.
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