Allied Blenders and Distillers Shares Dip After Positive Debut: What Should Investors Do Next?

Allied Blenders and Distillers had a strong start on the stock market today despite a generally weak market. The shares opened at ₹318.10 on the BSE and ₹320 on the NSE, giving investors a 14% gain right at the beginning. However, soon after, the shares faced selling pressure due to weak market conditions influenced by various global and industry-specific factors. Experts suggest holding onto the stock for potential future gains.

Stock Market Experts’ Views

Hold for Future Gains

VLA Ambala, a SEBI-registered Research Analyst and Founder of Stock Market Today, advises investors to hold onto their shares and let the stock perform in the market. He recommends not averaging the stock price for better results.

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Short-Term and Long-Term Outlook

Parth Shah, a Research Analyst at StoxBox, highlights the company’s strength in the IMFL (Indian Made Foreign Liquor) segment, which grew by 8% in FY23 and is expected to grow significantly by FY28. He notes the company’s strong brand presence and quality control measures, suggesting that these factors will drive future growth. However, due to the high valuation of the stock, he advises booking profits on the listing day but also sees potential for long-term gains if the company continues to perform well.

Investment Strategy

Avinash Gorakshkar, Head of Research at Profitmart Securities, points out that the stock listed below market expectations due to high valuations and weak market sentiments. He recommends holding the stock with a trailing stop loss at the upper price band of the public issue to maximize gains.

While the stock faced immediate selling pressure, experts suggest holding onto it for potential future gains, given the company’s strong market position and growth potential.