GPT Healthcare share price dips after strong listing. Buy, sell or hold?

GPT Healthcare share price is listed on BSE and NSE at around 16 percent premium against the issue price of ₹177 to ₹186 apiece. On BSE, GPT Healthcare share price opened at ₹216.15 per share level and went on touch an intraday high of ₹219.70 apiece. On NSE, GPT Healthcare share price was listed at ₹215 apiece and went on to touch an intraday high of ₹219.90 per share. However, the stock failed to sustain at higher levels after the profit-booking trigger. The newly listed stock soon retraced from the intraday high and touched an intraday low of around ₹200 apiece on both BSE and NSE.

According to stock market experts, the company's profitability is susceptible to the cost of consumable items. Apart from this, the company needs to improve in bed occupancy rate as well. They advised investors to book profit and review the stock after the announcement of its Q4FY24 results.

GPT Healthcare share price outlook

On the strategy post-listing of GPT Healthcare share price, Prathamesh Masdekar, Research Analyst at StoxBox said, "Under the aim of building new capabilities, the company plans to adopt and focus on super specialties that are not a focus area or are available at specific hospitals. However, the company's bed occupancy rate is lower than its listed peers. The company's profitability is susceptible to the cost of medical consumables, pharmacy items, drugs, and surgical instruments. The complex nature of treatments and procedures performed at its hospitals requires it to invest in new technology and equipment from time to time, which is generally expensive. The company is yet to expand its operations successfully to other parts of India. The bed occupancy rates need to improve to reflect better in the financial performance. However, at the current juncture, we advise investors to book profits and subsequently consider investing in the company after evaluating its quarterly performance in the near term."

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On why one should book profit and exit the position in GPT Healthcare shares, VLA Ambala, a SEBI registered Research Analyst and Founder of Stock Market Today said, "GPT Healthcare shareholders should note that despite a surge of 7.11% in GPT Healthcare’s revenue, its PAT declined by -6.37% in the year ending FY23, and it aims to use most of its IPO proceeds to repay debt."

Advising GPT Healthcare share allottees to book profit, Arun Kejriwal, Founder of Kejriwal Research and Investment Services said, "The stock is moving in the small ₹200 to ₹220 range as it is not facing any selling pressure from the HNI and retail investors. But, the stock has a limited probability of scaling further upside. So, I would suggest share allottees to book profit and exit."

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On suggestions to those who missed getting GPT Healthcare shares during the allotment process, Arun Kejriwal said that one should avoid taking any fresh position in the stock and look at other potential stocks in the healthcare segment.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.