Zaggle Prepaid Ocean Services Stock Makes Weak Debut, Analysts Recommend Selling

| Leave a Comment | News All

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.


Related News

  • 22 Sep

    HDFC Bank stock expected to re-rate in next 12-18 months, says Motilal Oswal’s Nitin Aggarwal

    Aggarwal is bullish on HDFC Bank's long-term prospects, but he believes that investors should wait and see how the bank executes in the near term.

  • 22 Sep

    Sai Silks’ IPO attracts lukewarm response, analysts raise concerns

    Sai Silks Kalamandir's IPO received a lukewarm response with a subscription rate of just 0.07 times. Analysts have raised concerns about the company's high debt levels, intense competition in the industry, and the fact that half of the issue size is an OFS. The company also has 30 percent of its promoter holdings pledged. Despite these concerns, the company's management is confident about its growth prospects.

  • 22 Sep

    PSU bank shares make a comeback on JPMorgan’s index inclusion decision

    PSU bank shares made a strong comeback on September 22, after JPMorgan's decision to include Indian government bonds in its emerging-market index boosted investor sentiment. However, analysts are urging caution with regard to the PSU bank space, citing the risks of investing in smaller PSU banks and the potential for divestment in some of the larger banks. Investors should carefully consider the risks and rewards before investing in PSU bank shares.

  • 22 Sep

    SEBI penalizes 11 entities for non-genuine trades in illiquid stock options segment

    The Securities and Exchange Board of India (SEBI) has penalized 11 entities for non-genuine trades, fined 2 entities for flouting disclosure rules, and suspended the registration of 1 research firm for violating regulatory norms. SEBI's actions are a reminder to market participants that they must comply with all regulatory requirements. Investors should be aware of these risks and take necessary precautions to protect themselves.

  • 22 Sep

    Market Summary for September 22, 2023

    Indian equity markets closed in the green on September 22, 2023, supported by buying in select banking and automobile stocks. Sectors such as pharma, information technology, and metals were the major drags. Options data suggests a sideways to positive momentum in the near term.

Leave a Reply

Your email address will not be published. Required fields are marked *