Stock market today: After opening at a discounted price on the BSE and the NSE, Suraksha Diagnostic’s share price came under selling pressure after the share listing. Suraksha Diagnostic’s share price opened on the BSE at ₹437 apiece, while it opened on the NSE at ₹438 per share. After discounted listing on the BSE and NSE, the newly-listed stock failed to attract fresh buyers, and the stock further tumbled after the profit-booking trigger. After a tepid debut on Dalal Street, Suraksha Diagnostic’s share price made an intraday low of ₹418 apiece on the BSE and ₹419 per share on the NSE.
According to stock market experts, Suraksha Diagnostic was expected to disappoint share allottees as the issue received a tepid response from the investors. They said the company’s limited geographic presence, inconsistent financial performance, and aggressive valuation are some of the primary reasons for such a tepid listing. They advised shareholders with a short-term view on the scrip to hold it with a strict stop loss of ₹400. However, medium- to long-term investors advised holding the scrip and closely monitoring the company’s performance in the upcoming quarters.
Suraksha Diagnostic share price outlook
On the suggestion to short-term investors, Shivani Nyati, Head of Wealth at Swastika Investmart, said, “The company’s limited geographic presence, inconsistent financial performance, and aggressive valuation likely contributed to the subdued listing. Investors should approach this stock cautiously and consider the company’s prospects, especially considering the competitive landscape. Investors in this position are suggested to keep a stop loss at around ₹400.”
Decoding the company’s financials, Prathamesh Masdekar, Research Analyst at StoxBox, said, “On the financial front, the company has delivered a Revenue CAGR growth of 20.9% between FY2022-24. As of FY24, Suraksha garnered a market share of ~1.15%-1.30% in its core eastern India market and aims to expand its presence in the northeastern markets further. The company provides pathology and radiology testing services, with revenue primarily concentrated in West Bengal. Its financial performance has been inconsistent, with a setback in FY23, but it has recently shown signs of recovery.”
Advising long-term investors to remain vigilant about the company’s performance in upcoming quarters, the StoxBox expert said, “Suraksha Diagnostic is highly valued at the upper price band compared to its peers. We thus recommend that investors who have been allocated shares hold on to the shares and closely watch how the company performs in the upcoming quarters.”
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.