After a spectacular debut on Dalal Street on Tuesday, shares of ixigo’s parent company, Le Travenues Technology Limited, continued their strong performance into Wednesday. The shares, which ended at ₹165.72 on their first day, opened at ₹183 on Wednesday and quickly reached an intraday high of ₹197.50. This rapid rise doubled the money for those who were allotted shares at the upper IPO price band of ₹93 per share.
Market Expert Opinions:
However, stock market experts caution that the IPO was offered at a higher valuation. With the stock having more than doubled since its IPO, further upside might be limited, making fresh investments or holding the stock less favorable. Experts suggest that new investors should wait for the stock to correct to around ₹140 to ₹145 before considering buying.
ixigo Share Price Outlook:
Prashanth Tapse, Senior Vice President of Research at Mehta Equities, advises ixigo shareholders to book profits and exit. He points out that post-IPO valuations are high and hard to justify for new purchases. While ixigo has a strong presence in rail bookings and a significant market share through ixigo and ConfirmTkt, only risk-tolerant investors should consider holding the stock for the long term. Conservative investors are better off booking profits now.
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, also believes the IPO was priced high. Based on ixigo’s FY23 balance sheet, he estimates the fair value of the stock to be around ₹140 to ₹145. This suggests the stock is currently overvalued, and a correction of ₹50 to ₹55 is possible. He advises ixigo shareholders to book profits and exit, as the stock might face a sharp correction once selling begins.
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