CMS Info Systems saw a weak listing on Friday. Shares of CMS Info Systems, one of the country’s largest cash management companies, opened at Rs 220 on the NSE, which was Rs 4 or nearly 2 per cent higher than its issue price of Rs 216. However, soon after the listing, its shares saw a tremendous rise and in intraday it rose by more than 19% to reach Rs 260.00. This helped many investors to increase their listing gains.
If experts are to be believed, then profit-booking may start very soon in the shares of CMS Info Systems. In such a situation, short-term investors should move out of the current level and look for other better options in the market. Although he also has strong fundamentals of the company and can prove to be a better bet for long term investors.
Aastha Jain, Senior Research Analyst, Hem Securities, said, “There is nothing wrong with the company. However, the sector it belongs to is currently showing overbought zones. Hence, short-term investors can benefit from it at current levels. It is advisable to book and leave.”
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He further added, “Those who had invested in it from a long-term point of view can also partially book profits in it. Then, if the stocks fall slightly, they can re-invest it at Rs 275 over a period of 3 to 6 months. You can take a position with a target price of Rs 200. Aastha said the stock may decline in the next two to three trading sessions as profit-booking is expected to start at any point in time.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said, “The availability of cash and its usage will decline as the trend of digital payments increases. This may impact the business of CMS Info Systems, which is a risk for the company. We investors are advised to book profit at current levels.”
What should new investors do? Speaking on this Aastha Jain said, “If any investor is interested in CMS Info System shares then my advice would be to wait a bit. They can buy when the price of the shares comes in the range of 200 to 215 and One can hold it with a target price of Rs 275 to Rs 300. However, they must also go with a stop loss of Rs 170.”
Choice broking executive director Sumeet Bagdia said, “Profit-booking in CMS Info System stocks can start anytime. So, investors can add it to their portfolio for every major fall and target it with a target price of Rs 275-300. Can hold with.”
On the first day of trading, shares of CMS Info System closed at 240.35 with a gain of 10 per cent on the BSE.
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