The stock market today saw a significant development as FirstCry share price made its debut on both the BSE and NSE, trading at a premium of around 40 percent, surpassing market estimates. The opening price of FirstCry shares on the BSE was ₹625, while on the NSE, it opened at ₹651 per share. The newly listed stocks didn’t stop there, as they continued to climb, reaching an intraday high of ₹707.70 on the NSE and ₹707.05 on the BSE within minutes of listing. However, profit-booking triggered a retracement from these highs.
Stock market experts have noted the strong debut of FirstCry shares on Dalal Street, with the stock trading well above its fair value of ₹550 to ₹575. They have advised shareholders to consider booking profits and exiting their positions due to challenges faced by the parent company, Brainbees Solutions Limited. These challenges include negative cash flows, regulatory issues, and increasing debt.
Akriti Mehrotra, a Research Analyst at StoxBox, highlighted the integration of physical and online platforms by FirstCry, leading to strong network effects and efficient operations. However, she also pointed out the company’s financial difficulties, such as persistent losses and rising debt. Despite a 15% revenue increase in FY24, FirstCry reported significant losses and a substantial rise in debt, raising concerns among investors.
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, predicted sharp selling in FirstCry shares following its strong debut. While the listing price exceeded market estimates, Kejriwal suggested that the stock may face selling pressure as it currently trades above its fair value. He advised investors who received shares during the allotment process to consider booking profits and exiting their positions, with a potential opportunity for medium to long-term investors to re-enter at a more favorable price point.
In conclusion, it is essential for investors to conduct thorough research and seek advice from certified experts before making any investment decisions. The views and recommendations provided by individual analysts or broking companies should be considered as part of a comprehensive investment strategy. As the stock market continues to fluctuate, staying informed and cautious is key to navigating the complexities of investing in today’s dynamic market environment.