Popular Vehicles and Services: Should you sell this stock

 With the least interest from the Investors Popular Vehicles and Services IPO was  still able to get fully subscribed on the final day of bidding & we can say that it happened with support of qualified institutional buyers (QIBs)  which picked up nearly  1.9 times the allotted quota.  But if we will check the subscription data then this public issue was only subscribed by 1.2 times & Retail Investors had also shown less interest in this Public Issue but finally subscribed by Retail investors 1.04. It was surprising that Employees of the company had showed strong interest 7 they had purchased nearly 8 times the reserved portion. The price band of Popular Vehicles and Services IPO was   in price band of Rs 280-295 per share.

"Investment Analysis: Popular Vehicles and Services IPO – Hold, Sell, or Buy?"

Now, investors face a crucial decision regarding their stake in Popular Vehicles and Services post-IPO.

Should Exiting Investors hold or sell “Popular Vehicles and Services”?

Should long term Investors Buy “Popular Vehicles and Services “?

Let us try to find out the answer of this question by analyzing the Financial Performance & Business Model of Popular Vehicles and Services Company.

Financial Performance of Popular Vehicles and Services:

Popular Vehicles and Services Limited had surprisingly positive financial performance recently which is always expected from all the company those plan to Listing their Companies IPO’s into the Stock market.

If we will check in the end of financial year on March 2023 then company  had reported an operating revenue more than  RS  498 crores &  EBITDA  was also surprisingly increased by 42% nearly if we will compare it with  previous year. The one another shocking factors is that company book net worth rose by  nearly 14% during the same period.

Diverse Product Portfolio: Maruti and NEXA Cars and Beyond:

If we will see that Business model of the company then   we will find that Company is actively engaged in maintenance, distributing financing and repair services which &  offering a range of products such as Maruti Eeco, Maruti Alto 800, Maruti Wagon R, Maruti S-Presso, NEXA CARS, Ciaz, XL6, S-Cross, Ignis, Baleno,  etc.

Navigating Competitive Challenges: Confronting Local Rivals:

In such Businesses, cost will always be high and more over local businesses always give big competition in term of Prices. The main competitors of Popular Vehicles and Services include Landmark Group having also good reputation in this segment and offering same services at competitive rates.  

The Tesla Effect: Unraveling Disruptive Pricing Strategies:

On the other hand, Tesla, one of its competitors, implements a unique floating pricing strategy that allows for flexible adjustments in prices based on market demand and supply dynamic. These diverse pricing strategies reflect the competitive landscape within the automobile industry, where companies strive to optimize their pricing models to meet customer needs and drive profitability.

Popular Vehicles and Services utilize a range of pricing strategies such as cost-plus pricing, competitor-based pricing, value-based pricing, and bundling discounts to attract customers and enhance sales.

Investment Recommendation on Popular Vehicles and Services stock: Buy, sell or hold

After analyzing above discussed factors, we can say that Popular Vehicles and Services is running good business but the only concern is that there is lot of competition in the market and debt on the books is also alarming. Company is already into that business in which local market and other big companies are offering same services at competitive prices so in this scenario, maintain the Profit Margin for the long term, it will be challenging for “Popular Vehicles and Services” company. We do not recommend long term investment into Popular Vehicles and Services. If you are short term traders then you can utilize the trade moment in the stock after few days of its IPO listing on both side but with strict stoplosses. There is a great future of Automobile sector in India but technology is getting change every day, every year is a big challenge for the Small companies.