Windlas Biotech listing disappoints, Exxaro Tiles jumps 10%: What should investors do now?

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Most experts Moneycontrol spoke to advise holding Windlas Biotech shares for the long term while short-term investors can book profits. As for Exxaro, the advise booking profits.

Sunil Shankar Matkar

August 16, 2021 / 04:13 PM IST

Windlas Biotech failed to meet expectations after the stock opened at Rs 439, a 4.6 percent discount to its issue price, on August 16, the listing day. The stock extended losses through the session and finally closed near its day low, down 11.5 percent.

On the other hand,  Exxaro Tiles provided its investors with a 10.3 percent gain, after opening at Rs 126, a 5 percent premium to its issue price.

Most experts Moneycontrol spoke to advise holding Windlas Biotech shares for the long term while short-term investors can book profits. As for Exxaro, the advise booking profits.

Windlas Biotech

Prashanth Tapse, VP Research at Mehta Equities said that investors who were allotted shares can hold their stake for the long term.

"We are optimistic on Indian CDMOs business wherein Windlas is one of the top five formulations of CDMO in India. Windlas has built strong long-term relationships with Indian pharmaceutical companies as well as multinational companies that engage in outsourcing for discovery and development. Windlas has the financial stability and operational ability, services and products in line with the needs of their customers through the entire process. Hence investors may consider it with a long term perspective only," Tapse said.

Astha Jain, Senior Research Analyst at Hem Securities, also advised holding the stock for the long term as the company is among the top five players in the domestic pharmaceutical formulations. Also, it has an innovative portfolio of complex generic products supported by robust R&D capabilities. The company boasts of efficient and quality compliant manufacturing facilities with significant entry barriers with strong clientele, she said.

According to Gaurav Garg, Head of Research at CapitalVia Global Research, investors can expect decent returns in the short to medium term. "Therefore they can hold for the said period or take the attractive listing premium and exit. Investors can definitely buy on listing day but adequate care should be taken not to buy at a higher price as this may increase the risk," he said.

Exxaro Tiles

Astha Jain recommended short-term investors to book profit, while those with a long term view can hold.

Prashanth Tapse said allotted investors should look to book profits as Exxaro is in a highly competitive sector with fragmented players leading the space and investors should know that Exxaro listed under T2T segment and this may affect the movement for the short term.

"Hence strategy should be booking profits on day 1 and investors those who want to hunt on the listing day should wait and watch for better pricing," he added.

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