Kusumgar shares bounce 10% after strong D-Road debut. What buyers ought to do now?
The inventory debuted at Rs 574 on the BSE, a 36.99% premium to its difficulty worth of Rs 419, whereas on the NSE it listed at Rs 569, up 35.80%.
The sturdy itemizing adopted overwhelming investor demand in the course of the IPO, which was subscribed 128.85 occasions in opposition to the 1.14 crore shares on provide. The Rs 650 crore difficulty was completely an Provide for Sale (OFS), with proceeds going to the promoting shareholders moderately than the corporate.
The IPO was priced within the Rs 398–419 band, with the strong subscription reflecting sturdy investor urge for food for the corporate’s area of interest enterprise.
What specialists’s say?
Based on Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.Kusumgar’s spectacular market debut displays sturdy investor confidence and constructive sentiment, notably in direction of the defence sector.
She stated the corporate operates in a specialised engineered materials phase with excessive entry limitations and long-term progress potential, particularly in aerospace and defence purposes. Nevertheless, buyers ought to stay conscious of sure challenges, together with a decline in income, earnings per share (EPS), and return on internet value (RoNW) over the previous three years.
The corporate’s FY25 efficiency was additionally supported considerably by a one-time CFF parachute order, elevating questions concerning the sustainability of near-term earnings momentum. Moreover, for the reason that IPO was a whole OFS, Kusumgar didn’t obtain contemporary funds from the difficulty to help future progress initiatives.
Nyati advisable buyers maintain the inventory with a strict stop-loss at Rs 520. IPO buyers could contemplate reserving partial earnings following the sharp itemizing positive factors whereas retaining the remaining holdings with the stop-loss in place.In the meantime, Emkay has initiated protection on Kusumgar Speciality Ltd. (KSL) with a ‘Purchase’ ranking and a goal worth of Rs. 800, implying an upside potential of round 91%.
The brokerage expects the corporate to profit from vital progress alternatives in its high-margin A&D Materials enterprise, rising international defence spending and a number of free commerce agreements which are beneficial for home producers. Emkay additionally highlighted the corporate’s concentrate on coming into excessive entry-barrier product segments, which it believes will help industry-leading margins. As well as, it stated KSL’s diversified progress drivers ought to assist cushion the impression of weak spot in any single enterprise phase.
About Kusumgar
Based in 1990, Kusumgar is a distinguished producer of woven, coated, and laminated engineered artificial materials used throughout a number of high-performance industrial purposes.
The corporate develops superior cloth options utilizing polyamide and polyester filaments mixed with polyurethane chemistry. Its merchandise are engineered to ship key efficiency traits reminiscent of excessive tensile energy, tear resistance, abrasion resistance, breathability, consolation, and waterproofing.
With experience spanning greater than three many years, Kusumgar has constructed a portfolio of over 1,000 distinctive Inventory Holding Models (SKUs) as of March 31, 2026. Its merchandise serve numerous sectors, together with aerospace and defence, industrial and automotive purposes, and outside and way of life markets.
Kusumgar operates an built-in manufacturing ecosystem protecting your entire manufacturing cycle, together with preparatory processes, weaving, dyeing, printing, ending, coating, lamination, and fabrication.
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The corporate has seven manufacturing services — six situated in Gujarat and one fabrication unit in Uttar Pradesh. These services are supported by trendy infrastructure, superior manufacturing know-how, and devoted analysis and improvement capabilities.
(Disclaimer: Suggestions, recommendations, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Instances)
