The rational strategy, as per analysts, is to wait for a few days and let the price settle before taking any decision. Those who are eyeing short-term gains can book profit at Rs 78 levels while those who have long-term investment horizon should stay put and accumulate the stock gradually.
It is advisable to wait for a while because there has been many instances in the past where after stellar listing, the euphoria in the stock has fizzled out, said Narendra Solanki, Head- Fundamental Research (Investment Services) at Anand Rathi Shares & Stock Brokers. "Those who are in for long haul should gradually "add" the stock to their portfolio as the valuations are extremely attractive. Further, the company's prospects, too, look promising," the analyst added.
The recent acceleration in assets under management (AUM) growth is likely to sustain with the bank now focusing on new secured product offerings like Micro and Small Enterprises (MSE) and Affordable Housing over Micro finance Institutions (MFI), which have relatively lower yields but also lower cross-cycle credit costs, said Nirmal Bang Securities. The brokerage expects H1FY20 ROA/ROE of 2.5 per cent/19.6 per cent to sustain going ahead.
Gaurav Garg, Head of Research at Capital Via, suggests that the investors should hold the stock for now and once it reaches Rs 78 levels, they can book profit. The analyst feels that the counter is likely to touch the level maximum by next month.