The opening price of Sanstar shares on Indian exchanges was approximately 15% above market value, far less than anticipated.
Share Market News Today: The Sanstar share price today missed the market estimates and was listed at ₹106.40 on the BSE and ₹109 on the NSE, giving the lucky allottees a listing gain of about 15%. Sanstar’s newly listed stock, however, continued to rise following a strong launch, reaching an intraday high of ₹127.68 per share on the BSE and ₹128.79 on the NSE.
Stock market analysts claim that Sanstar’s share price has exceeded market projections and that the current increase is merely an emotional one.
The business is running at 85 percent of its potential. The Red Herring Prospectus and the Sanstar Limited IPO announcement both referenced the Capex expansion, which is anticipated to go live in the current fiscal year’s fourth quarter. Thus, the business is using its maximum capital expenditure, which will either stay the same or decrease in FY25.
Allottees of Sanstar shares should therefore register a profit and sell. When the stock stabilizes after listing, investors with a long-term perspective might reenter at a reduced price. It is anticipated that the Sanstar Company stock will go laterally lower for the rest of FY25, so those who were unable to secure Sanstar shares during the allotment procedure may choose to wait for the stock to settle after listing.
Sanstar share price outlook
Co-founder and Chief Global Strategist at Pace 360, Amit Goel, discussed the fundamentals of Sanstar shares as follows: “Sanstar Limited is involved in the production of specialty plant-based products, and food, pet food ingredient solutions, and India’s other industrial applications.”
It consists of dextrose monohydrate, dried glucose solids, powdered maltodextrin, native and modified maize starches, and by-products such as fiber, gluten, germ, and fortified proteins. While the bottom line increased consistently over the stated period, the top lines showed notable inconsistencies. Taking into account the FY24 profits, the issue looks to be priced aggressively.
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, discussed the forecast for the Sanstar share price and stated, “The company is operating at 85 percent of its Capex, which means at the maximum Capacity.” The business has guided capacity increase in RHP, and it is anticipated to go into effect starting in the current fiscal year’s fourth quarter.”
This indicates that in the current fiscal year, the operating Capex of the recently listed mainboard business will either decrease or stay the same. The expansion of Capex is anticipated to have negative effects on the company’s balance sheet in Q4FY25, however, over the next two to three quarters, the effects will be gradually absorbed, resulting in a flat and dropping share price for Sanstar in FY25.
Sanstar share price: Investment strategy
“Those allottees with a long-term view on Sanstar shares are advised to book profit in the current rally and wait for the stock to settle down post-listing,” disclosed Arun Kejriwal’s investing strategy for the company’s stock. Since it is anticipated that the stock will decline following the profit-booking trigger, they can reenter at the lower level.
About Sanstar shares, Kejriwal advised new investors, “As the stock is trading at higher valuations, new investors should wait for the newly listed stock to stabilize.” With the buy-on-dip technique, Sanstar shares can be bought for as little as ₹100.”
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