Stock market today: FirstCry’s share price listed on the BSE and NSE on Tuesday is around 40 percent higher than market estimates. FirstCry’s share price opened today on the BSE at ₹625, and on the NSE it opened at ₹651 per share. However, the newly listed shares did not stop there. Firstcry shares continued to extend the gain in the listing and reached an intraday high of ₹707.70 per share on the NSE and ₹707.05 per share on the BSE within minutes of listing. However, the stock could not sustain an intraday high and fell back after the profit-taking trigger.
According to stock market experts, FirstCry shares have made a strong debut on Dalal Street and extended their listing gains. They said that FirstCry share price is trading much higher from its fair value of ₹550 to ₹575, and advised shareholders to book profits and exit. They said that the parent company of the FirstCry brand, Brainbees Solutions Limited, faces significant challenges, including persistent negative cash flows, regulatory issues and rising debt.
Price target for FirstCry shares
Commenting on the FirstCry share listing, Akriti Mehrotra, Research Analyst at StoxBox, said, “FirstCry effectively integrates its physical and online platforms and benefits from strong network effects and efficient operations. However, the company faces significant challenges including persistent negative cash flows, regulatory issues and rising debt. In FY2024, FirstCry reported a 15% increase in revenue to Rs 6,575.1 crore, but reported losses of Rs 321.5 crore and a significant increase in debt from Rs 176.5 crore to Rs 462.7 crore.”
“The funds raised are for operational purposes rather than debt repayment. Given these factors, the market may reflect initial enthusiasm but not fully factor in the company’s ongoing financial difficulties and mounting debt. While the stock price reflects short-term market confidence, the underlying financial challenges suggest caution is warranted. We recommend that investors who have been allocated shares book profits and sell their positions for now,” the StoxBox expert added.
Expecting strong selling in Firstcry shares after the strong debut, Arun Kejriwal, Founder, Kejriwal Research and Investment Services, said, “Firstcry stock is trading above market estimates. Brainbees Solutions share price should trade at around the fair value of ₹550 to ₹575. FirstCry’s share price is currently ₹670 on the NSE. So, heavy selling of the stock is expected. Those who have purchased Brainbees Solutions shares during the allotment process are therefore advised to book profit and exit. Medium and long term investors may consider acquiring a fresh position once the stock reaches its fair value.”
Disclaimer: The views and recommendations above are those of individual analysts or brokerage firms and not of Mint. We advise investors to seek advice from certified professionals before making any investment decisions.
