Dee Development Engineers Shares Continue to Rise After Strong Market Debut: Should You Buy or Sell?

Dee Development Engineers made a strong debut on the stock market. The shares were listed on the BSE and NSE at a significant premium compared to their issue price of ₹193 to ₹203 per share. The stock opened at ₹325 on the BSE and ₹339 on the NSE, marking a rise of around 65%. The shares continued to climb, reaching an intraday high of ₹365.70 on both exchanges. Experts suggest the stock is trading at a 50% premium and recommend that investors book 50% profit if they want to hold for more gains.

Dee Development Engineers Share Price Outlook:

VLA Ambala, a SEBI-registered Research Analyst and Founder of Stock Market Today, commented on the fundamentals of Dee Development Engineers. Despite a decline in net worth from ₹448.50 crore in 2021 to ₹413.70 crore in 2023 and an increase in borrowing from ₹257.17 crore to ₹352.62 crore during the same period, the company’s revenue rose to ₹614.32 crore in March 2023. Ambala noted that the IPO funds would mainly be used for working capital and debt repayment. He suggested that those who missed the IPO could consider buying in the secondary market if the price dips.

Prathamesh Masdekar, Research Analyst at Stoxbox, advised shareholders to hold onto the stock for the medium to long term. He pointed out that the company’s revenue grew at a CAGR of 10% between FY21-23. The company’s capacity expansion plans will likely enhance future financial performance. Additionally, the company is reducing its debt, which will strengthen its balance sheet. Masdekar believes the company’s strong financial position, customer relationships, capacity expansion, entry barriers, and competent management team will drive future performance. Therefore, he recommends holding the shares for the medium to long term.

For those who invested for listing gains only, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, suggested either booking complete profits and looking for other quality stocks or booking 50% profit and holding the rest for further potential gains.