Premier Energies shares down 13% from recent record high level; here's what investors can do

Shares of Premier Energies Ltd plunged 7.91 per cent to hit an intraday low of Rs 1,082.20 on Wednesday. The stock eventually settled 6.64 per cent lower at Rs 1,097.10. It started losing steam after scaling a record high of Rs 1,264.90 during the previous session.

At today's closing value of Rs 1,097.10, the scrip has declined 13.27 per cent from its all-time high value of Rs 1,264.90. Despite the mentioned drop, the multibagger scrip has rallied 143.8 per cent compared to its initial public offering (IPO) price of Rs 450. Premier Energies staged a solid market debut on September 3 last week.

Investors should consider booking some profit at current levels, a few analysts said. Those with a high-risk appetite should only continue with their positions, one of them suggested.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock is looking weak and can slip towards Rs 1,025 level. One can consider buying it on dips. Investors with listing gains can also consider some profit booking."

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Investors with listing gains can take some profit from the table. Those with a high-risk appetite should only consider holding on to the stock."

Sebi-registered research analyst AR Ramachandran said, "After a stellar listing, Premier Energies looked overvalued at the current market price. Investors should be booking profits at current levels."

Echoing similar views, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, also investors to book some profit as the stock has delivered stellar returns compared to its issue price.

Around 10.46 lakh shares changed hands on BSE today. The figure was lower than the two-week average volume of 26.41 lakh shares. Turnover on the counter came at Rs 117.47 crore, commanding a market capitalisation (m-cap) of Rs 49,454.46 crore.

Incorporated in April 1995, Premier Energies manufactures integrated solar cells and solar panels. Its product portfolio includes cell, solar modules, bifacial modules, EPC solutions and O&M solutions. It has five manufacturing units in Hyderabad, Telangana.