Buy, sell or hold: What should you do with Muthoot, Suraj Estate and Motisons post-listing?

About this update from Motisons Jewellers Ltd

It has been a lukewarm day for investors of Suraj Estates and Muthoot Microfin after the companies made a rather weak debut on the bourses, trading at a discount of over 8 and 4 percent, respectively.Meanwhile, investors cheered Motisons Jewellers after the stock made a stellar debut, commanding an 88 percent premium over the issue price of Rs 55.Follow our market blog for all the live actionIn the afternoon trade, Muthoot Microfin was trading at a discount of 8.5 percent at Rs 259 over the issue price of Rs 291. On the other hand, Mumbai-based Suraj Estate Developers were traded lower by 4.5 percent at Rs 346 over the issue price of Rs 360.What should investors who received the allotment do? Here's what analysts recommend.Despite Suraj's weak debut, Prathmesh Masdekar of Stoxbox is optimistic about the stock and recommends investors who have received allotment to hold shares from a medium to long-term perspective. This is because the company has a track record of sustained consolidated revenue from operations, growing at a CAGR of 13 percent during the FY21-23 period. Their strong presence in the South-Central Mumbai region has generated significant brand recall in sub-markets and substantial sales referrals from existing customers.The real estate developer will make use of net fresh issue proceeds for repaying debts amounting to Rs 285 crore, and Rs 35 crore will be utilised for the acquisition of land or land development rights in the Mumbai Metropolitan Region. The remaining fresh issue money will be set aside for general corporate purposes."Suraj Estate Developers presents a viable hold opportunity for medium to long-term investors, backed by steady growth and its niche in regulation," Suman Bannerjee, CIO, of Hedonova, an alternate investment fund said.Masdekar also has maintained a positive stance on Muthoot Microfin irrespective of the counter trading at a discount. "The lender has a well-diversified funding profile that underpins its liquidity management system, credit rating, and brand equity. As the lender will utilize the net proceeds of the fresh equity shares issue to augment its Tier-I capital base, its capital adequacy will enhance and lead to a stable leverage position", the analyst added. He advises investors to hold their shares from a medium to long-term perspective as they are fairly valued at the current P/BV multiple of 2.3 times th...

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