Zaggle Prepaid Ocean Services Stock Makes Weak Debut, Analysts Recommend Selling
Shares of Zaggle Prepaid Ocean Services made a muted debut on bourses on September 22, listing at Rs 164 on NSE and Rs 162 on BSE against the IPO price of Rs 164.
At 10.30 am, the stock was trading at Rs 166.6 on the NSE and Rs 166 on the BSE.
Analysts have recommended selling Zaggle stock on the opening day, citing its high P/E valuation, debt-to-equity ratio, and negative cash flow.
StoxBox analysts said the IPO is aggressively priced at a P/E of 66.7x FY23 earnings. The fintech industry in which the company operates is highly competitive, which may affect its earnings prospects.
Swastika Investmart analysts said Zaggle is a uniquely positioned player in the fintech industry but it has a major dependency on third parties and has faced negative cash flow and a decline in its profitability in recent years. The IPO valuation was also high.
Overall, analysts are not bullish on Zaggle stock and recommend selling it on the opening day.
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