Stallion India Fluorochemicals shares hit 5% upper circuit post listing

Shares of Stallion India Fluorochemicals hit a 5% upper circuit at Rs 125.99 on the BSE after their debut on the exchanges on Thursday. The stock debuted at Rs 120 on the BSE and NSE, with a premium of Rs 30 or 33.3% over the IPO price of Rs 90.

Meanwhile, from the issue price the stock has surged 40%.

"The company made a good stock market debut, listing for Rs 120 per share, a significant 33% premium. Those who took part in the initial public offering (IPO) may book part profit and hold with stoploss of 105," said Shivani Nyati, Head of Wealth at Swastika Investmart.


Meanwhile, Prashanth Tapse, Senior VP (Research) at Mehta Equities, said, "Despite high market volatility, Stallion India received a healthy response from investors across all categories. Considering the market trend and posting listing performances of the last few IPOs, we are recommending investors to book profits above our expectations on listing day. Post listing, we can see short term volatility, hence advice for non-allotted investors, to wait and watch."

"On valuation per se, at the upper price band, it was fairly and reasonably priced based on annualised earnings. Hence we believe the company has decent room for healthy business growth driven by industry tailwinds and scalability," Tapse added.

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The IPO had received a robust response from investors with a subscription of nearly 188 times, driven by strong bidding from non-institutional investors.

The company plans to use the net proceeds from the IPO for working capital and capital expenditure requirements and other general corporate purposes.

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Stallion India Fluorochemicals deals in gases that are broadly classified as Fluorochemicals. They are mainly used as refrigerants.

Its products such as gases are used in various industries, including semiconductor manufacturing, automotive, electronics, pharmaceuticals, healthcare, fire extinguishers, spray foam, glass bottle making, and aerosol production.

The increasing demand for fluorochemicals and specialty gases across various industries presents a significant growth opportunity for market players.

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Over the past three fiscal years, the company recorded total income of Rs 186 crore, Rs 226 crore and Rs 236 crore. In the first half of FY25, it reported a net profit of Rs 16.57 crore on a total income of Rs 141.53 crore.

The company’s average EPS over the past three years was Rs 2.50, with an average RoNW of 16.64%. The company was valued at a P/BV ratio of 4.11 based on a NAV of Rs 21.89 as of September 2024, and 2.42 based on the post-IPO NAV of Rs 37.22 per share.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)