ASK Automotive Limited, after a positive debut on BSE and NSE, witnessed a further increase in share price, reaching an intraday high of ₹311.75 on BSE and ₹312 on NSE. Experts believe the IPO listing aligns with market expectations, with the stock trading at a 7.5% premium during the special pre-open session. Despite high valuations and a 100% offer-for-sale (OFS), market analysts suggest that ASK Automotive’s fundamentals present a significant opportunity for long-term investors, recommending a hold perspective.
Prashanth Tapse, Senior VP at Mehta Equities, sees ASK Automotive as a proxy play for the growth in the Indian automobile sector. He believes that the overwhelming response from various investors, especially Qualified Institutional Buyers (QIBs), indicates strong post-listing demand. Tapse advises holding the stock for the long term, emphasizing its potential as a player in the growing automobile sector.
Avinash Gorakshkar, Head of Research at Profitmart Securities, considers the IPO listing as decent, given the positive performance despite high valuations and a 100% OFS. Gorakshkar suggests long-term investors hold the stock and accumulate on any dips, highlighting the company’s strong fundamentals and the expected growth in the auto segment.
Prashanth Tapse recommends a long-term hold for allotted investors, considering ASK Automotive’s potential for healthy returns in the evolving automobile sector. For those who couldn’t secure allotments, he suggests accumulating on the listing day for promising long-term gains.
Arun Kejriwal, Founder at Kejriwal Research and Investment Services, sees ASK Automotive shares establishing a base in the ₹305 to ₹310 per share zone. He advises allotted investors to hold with a strict stop loss at ₹299 per share and suggests a fresh entry at current levels with a stop loss at ₹299. Kejriwal recommends accumulating more if the price falls in the ₹305 to ₹310 per share range, backed by strong trade volume indicating a robust rebound.
ASK Automotive shares opened at ₹303.30 on NSE and ₹304.90 on BSE, demonstrating a positive response to the IPO listing.
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