Vaibhav Jewellers makes a muted debut: Should you buy, hold, or book profit?

The IPO price of Rs 215 was met by a disappointing debut on the bourses on October 3 for Manoj Vaibhav Gems N Jewellers (Vaibhav Jewellers). Some analysts have recommended maintaining the stock for the medium to long term, however the head of wealth at Swastika Investmart, Shivani Nyati, has cautioned investors to sell because of the company's high IPO price and the intense competition in the jewelry industry.

The public offering, which began on September 22 and ended on September 26, was 2.25 times oversubscribed. Subscriptions for the offer were 5.18 times the reserved part, with the majority of the support coming from ultra-high-net-worth people. Qualified institutional purchasers and retail investors were less enthusiastic, purchasing 1.06 times and 1.66 times the quota, respectively. The stock rose 2.63 percent, or Rs 220.65, on the NSE at the midday hour.

The question now is whether or not you should invest in the stock, whether you should sell any shares you already own, or whether you should hold onto them for the time being. Let's find out what the professionals think.

Investors may exit their positions: Swastika Investmart

The initial public offering (IPO) for Manoj Vaibhav Gems and Jewels was poorly received and only 2.25 times oversubscribed. The high IPO price, the company's small size, and the intense competition in the jewelry industry are all possible causes. Manoj Vaibhav Gems and Jewels's listing "was generally consistent with expectations," Shivani Nyati remarked.

In addition, she suggested that IPO allotment holders think about selling their shares.

Hold for long-term: Hem Securities

The company is a leading home-grown regional brand that was founded on a hyperlocal retail approach, thus we advise investors to keep for the long term. According to Astha Jain, a senior research analyst at Hem Securities, "the company has an early mover advantage in the state of Andhra Pradesh and has been slowly moving towards capturing and expanding over brand in Tier II and Tier III cities."

Hold stock for medium to long term: StoxBox

Dhruv Mudaraddi, a research analyst at StoxBox, claims that Manoj Vaibhav Gems N Jewellers' income has increased steadily over the past two years, and that its profit has increased even more dramatically, increasing by more than threefold. When compared to its already-listed competitors, MVGJL stands out thanks to its 23 percent return on equity in FY23. This bodes well, as rural regions accounted for 50–52 percent of the entire jewelry market in FY23, and the company plans to open eight new stores to target more of these areas.

"Based on the prospects of the sector, the company's product catalogue, its stronghold in the southern markets, and a good track record, we remain positive on the company and recommend investors who have received allotment to hold the stock from a medium to long term perspective," Mudaraddi said.

Moneycontrol.com's investment gurus provide their own opinions and advice, not that of the website or its administration. Moneycontrol.com recommends that customers consult with qualified professionals before making any financial commitments.

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