Shares of Arvind Fashions (AFL) surged 10 per cent to Rs 1,059.95 on Monday, bringing their total gains to 79 per cent within 11 sessions of being listed on the bourses. Market participants see the fair value for the stock between Rs 1,100 and Rs 1,300, saying it is unlikely to keep hitting circuit limits beyond one or two more sessions.
The stock was listed on March 8 and investors had faced confusion that day as it opened at levels much lower than what the Street had estimated. The st ..
“The analysts are estimating fair value between Rs 1,100 and Rs 1,300. The stock had opened lower on listing day due to calculation methodology that the exchange followed. Traders have continued to buy the stock and have now brought it closer to fair value,” said Deepak Jasani, head of retail research at HDFC Securities.
“Post that. I don't think there will be too many buyers at that level,” said Jasani.
The circuit filter on the stock changed to 10 per cent from 5 per cent on Friday, and the stock has also been shifted to B Group from T. Only delivery-based transactions are allowed in the T Group and traders cannot take intra-day positions.
Arvind Fashions was demerged from parent entity Arvind on November 29, 2018, and it handles the branded and retail business. Arvind had allotted one fully paid-up equity share of Rs 4 each of Arvind Fashions for every five shares held in the company.
The company's retails brands such as US Polo Association, Flying Machine, Arrow, and Tommy Hilfiger. It also has speciality retail brands such as Gap, Sephora and Unlimited and emerging brands that include Calvin Klein, Aeropostale, The Chi ..
The stock was listed on March 8 and investors had faced confusion that day as it opened at levels much lower than what the Street had estimated. The st ..
“The analysts are estimating fair value between Rs 1,100 and Rs 1,300. The stock had opened lower on listing day due to calculation methodology that the exchange followed. Traders have continued to buy the stock and have now brought it closer to fair value,” said Deepak Jasani, head of retail research at HDFC Securities.
“Post that. I don't think there will be too many buyers at that level,” said Jasani.
The circuit filter on the stock changed to 10 per cent from 5 per cent on Friday, and the stock has also been shifted to B Group from T. Only delivery-based transactions are allowed in the T Group and traders cannot take intra-day positions.
Arvind Fashions was demerged from parent entity Arvind on November 29, 2018, and it handles the branded and retail business. Arvind had allotted one fully paid-up equity share of Rs 4 each of Arvind Fashions for every five shares held in the company.
The company's retails brands such as US Polo Association, Flying Machine, Arrow, and Tommy Hilfiger. It also has speciality retail brands such as Gap, Sephora and Unlimited and emerging brands that include Calvin Klein, Aeropostale, The Chi ..
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