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Garuda Construction and Engineering Limited made a strong debut on the Indian stock market, defying pre-listing expectations of a flat or even negative listing. The company's shares opened at ₹103.20 on the BSE and ₹105 on the NSE, marking a 10% gain for initial allottees. This positive performance surprised market experts, who attributed it to Garuda Construction's strong order book, project diversification, and superior return on net worth. The company's share price continued to climb, reaching a peak of ₹120.99 on the NSE shortly after listing, demonstrating strong investor interest.
While the company's growth slowed in FY24 due to the election year, its overall financial performance remains robust. Garuda Construction's revenue doubled from ₹77.02 crores in FY22 to ₹154.17 crores in FY24, with an annual growth rate of 26.03%. Profit after tax also increased from ₹18.78 crores in FY22 to ₹36.43 crores in FY24, indicating a steady 24.72% annual growth rate. These impressive financial figures further bolster the positive outlook for the company's future performance.
Experts recommend a cautious approach for investors. While the initial listing gains might be appealing, it's crucial to monitor the company's performance and market conditions. Investors holding the shares are advised to set a stop loss at or below the issue price to mitigate potential risks. For those looking for medium to long-term gains, the company's strong fundamentals and expansion into high-growth segments make it a potential investment opportunity. However, the lack of a grey market premium suggests there may not be immediate additional listing gains. Ultimately, individual investors should carefully assess their investment goals and risk tolerance before making any decisions regarding Garuda Construction shares.
Source: Garuda Construction share price soars after positive listing. Buy, sell or hold?