Recently, many stocks that debuted on the stock market have shown impressive performance, making their investors wealthy. One such stock is TBO Tek Limited, which has filled its investors’ pockets and is now on the verge of joining the multibagger list.
Share Slips from Its High Level
On Friday, TBO Tek Limited’s share closed at ₹1,576 on the NSE with a slight increase. However, it is still trading below its highest level. Over the past week, the share has dropped by more than 8%, and over the past month, it has declined by about 11.50%. The stock’s highest level was ₹1,938.45.
IPO Launched Just 3 Months Ago
Despite the recent decline, investors who bought during the IPO are still enjoying significant profits. TBO Tek’s IPO was launched in early May this year. The IPO opened on May 8 and closed on May 10. After being oversubscribed by nearly 87 times, TBO Tek’s IPO was listed on May 15. It’s been almost 3 months since it entered the stock market.
Brokerage Firm’s Target Price
The company had set a price band of ₹875 to ₹920 for the IPO. Compared to the upper price band, the share is still up by more than 71%. Brokerage firm JM Financial believes there is still room for growth in this stock. They have given TBO Tek’s share a “Buy” rating with a target price of ₹1,950.
How It Could Become a Multibagger Stock
According to the target given by JM Financial, TBO Tek’s share could rise about 24% from its current level. Compared to the IPO’s upper price band, its gain could exceed 110%. This means that this stock has the potential to join the multibagger list. A stock that gives at least 100% return in a specific period is considered a multibagger.
