Saurabh Mukherjea-owned GMM Pfaudler share tanks 15%. Opportunity to buy?

Stock market experts maintained that GMM Pfaudler is a quality stock and there is nothing wrong with the fundamentals of the company despite this development. They advised positional investors to accumulate and maintain ‘buy on dips’ strategy till this Saurabh Mukherjea’s Little Champ stock trades above ₹1,440 levels.

Speaking on the reason for FMM Pfaudler share price crash, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “GMM Pfaudler shares have fallen due to the market buzz about Pfaudler Inc to sell GMM Pfaudler stake worth ₹2,278 crore stake (29.88 per cent equity). However, the development won’t affect GMM Pfaudler as a quality company and one should look at this fall as an opportunity to accumulate from now onwards. The stock is available at an attractive discount from its 52-week high of around ₹2,110 apiece levels that it made in September 2022.”

Sharing pivot points in regard to this Saurabh Mukherjea portfolio stock, Mehul Kothari, AVP — Technical Research at Anand Rathi said, “Due to recent crack the small-cap chemical stock has retraced 61.8 per cent of the entire rally, which started from ₹1,250 to ₹2,170 levels. The zone of ₹1,600 to ₹1,500 seems to be a support area as per the Ichimoku indicator. Thus investors or traders can accumulate the stock in the given range.” The Anand Rathi expert said that trend would turn weak only when GMM Pfaudler share price falls below ₹1,440 apiece levels.

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GMM Pfaudler block deal details 

As per the Livemint report, it has been reported that Pfaudler Inc, a promoter of listed company GMM Pfaudler Ltd, will sell a majority of its stake in the company in a block deal that will fetch the shareholder ₹2,278 crore. According to the details of this equity selling deal, Pfaudler Inc is selling 1.34 crore shares of the company, representing 29.88 per cent stake in the company at a floor price of ₹1,700 apiece, which is a 11.67 per cent discount to the company’s closing price of ₹1,924 per share on Thursday.

Pfaudler Inc held a 31.88% stake in the company as of 30 September, as per stock exchange data. Total promoter stake will fall to 26.18% from 56.06% currently. Other promoter shareholders hold a 24.18% stake in the company.

Axis Capital is the sole broker of this block deal.

GMM Pfaudler shares are one of the three Saurabh Mukherjea’s Little Champ stocks. Saurabh Mukherjea is Founder & Chief Investment Officer at Marcellus Investment Managers. He believes that the chemical stock can become a global leader in glass lined and ceramic reactors after acquisition of Pfaudler.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.