Multibagger stock ideas: Vidya Wires IPO: Buy, Sell or Hold? Latest Target Update

What Should Investors Do in Vidya Wires After Listing — Buy, Sell or Hold?

Easy-language guide with clear price targets, support & resistance levels, and the key price zones traders must watch.

Contents

• Company Overview (Short)
• Fundamentals & Numbers
• Buy, Sell or Hold — My View
• Price Targets (Short / Medium / Long)
• Support & Resistance Levels
• Crucial Levels Traders Must Watch
• Risks & Things to Note
• Conclusion
• FAQs

Company Overview (Short)

Vidya Wires makes wires and copper/aluminium conductors used in many industries — power plants, transformers, electric vehicles, railways, and solar systems. It sells in India and in about 18 countries. The company has a factory in Anand, Gujarat, and the IPO proceeds will mainly fund a new project, repay part of debt, and be used for general business needs.

Fundamentals & Numbers — What to notice

Here are the clear facts to keep in mind (based on the numbers you gave):

• Revenue and profit grew well recently: revenue up ~25% and PAT up ~59% year-on-year.
• ROE ≈ 24.6% and ROCE ≈ 19.7% — both healthy for a manufacturing firm.
• Debt-to-equity ≈ 0.88 — moderate leverage; IPO funds will cut some of this debt.
• P/E is around 20–23x and Price-to-Book ≈ 6.6 — investors are assigning a premium for growth.
• Current market price used for calculations in this article: ₹52 per share.

Simple take: business metrics are encouraging for growth, but valuation is not cheap. The stock suits investors who want growth and can accept some volatility.

Buy, Sell or Hold — My view (easy words)

If you already own the stock: hold and consider buying more if price dips to strong support zones listed below. Do not panic-sell small dips — the company has visible growth drivers (EV, renewables, export markets).

If you do not own it and are thinking to buy now: prefer staggered buying. Buy small amounts in parts (rupee-cost averaging) and avoid putting all money at once. Short-term traders can aim for quick targets but must use tight stop-losses.

Price Targets (used ₹52 as base)

The targets below combine technical moves and a reasonable view of company growth. Percent gain from ₹52 is shown in plain words so you can judge risk-reward.

Short-term targets (1–3 months)

• Target A: ₹56 (≈ 7.7% upside)
• Target B: ₹60 (≈ 15.4% upside)
• Target C: ₹64 (≈ 23.1% upside)
• Target D: ₹67 (≈ 28.9% upside)

Medium-term targets (6–12 months)

• Target A: ₹72 (≈ 38.5% upside)
• Target B: ₹78 (≈ 50.0% upside)
• Target C: ₹84 (≈ 61.5% upside)
• Target D: ₹90 (≈ 73.1% upside)

Long-term targets (12–24 months)

• Target A: ₹105 (≈ 101.9% upside)
• Target B: ₹118 (≈ 126.9% upside)
• Target C: ₹132 (≈ 153.8% upside)
• Target D: ₹150 (≈ 188.5% upside)

These long-term numbers assume the company grows revenues, cuts some debt, and benefits from demand in EV and renewable sectors. They are **goals**, not guaranteed outcomes.

Strong Support & Resistance Levels

Traders often use these to place stop-loss or to plan buys/sells.

Support zones (buyers likely to step in)

• Support 1: ₹50 — first line of defence
• Support 2: ₹47 — caution zone; weaker buying below this
• Support 3: ₹44 — important structural support
• Support 4: ₹40 — major support; strong buying might appear here

Resistance zones (sellers may appear)

• Resistance 1: ₹58 — short-term hurdle
• Resistance 2: ₹64 — key breakout level
• Resistance 3: ₹72 — mid-term resistance
• Resistance 4: ₹84 — higher resistance where profit booking is possible

Crucial Price Levels Traders Must Watch (clear warning)

If the stock drops below the ₹47–₹44 zone, it may signal further weakness and push price toward ₹40. On the upside, a clean and sustained move above ₹64 would be a bullish sign and can invite fresh buyers.

Risks & Things to Note

• Valuation risk: P/E and P/B are high—if growth slows, price may fall quickly.
• Commodity risk: copper and aluminium prices affect margins.
• Execution risk: the company must deliver on capex and keep export momentum.
• Market risk: newly listed stocks can be volatile; liquidity and sentiment matter.

Always use a stop-loss that fits your risk appetite. If you are unsure, consider consulting a certified financial advisor.

Conclusion — Simple answer

For most investors: Hold and accumulate on dips. For new buyers: use staged buying; avoid full allocation at once. Short-term traders can aim for the short targets but must use strict stop-loss rules. Long-term investors who believe in the company’s industry trends (clean energy, EV, transmission) can consider riding the multi-year growth, while keeping an eye on valuation and debt reduction progress.

---

FAQs

Q1. Should I buy Vidya Wires after listing?

Consider staggered buying. If you like growth and can handle ups and downs, buy small amounts on dips.

Q2. What are the short-term targets?

Short-term targets suggested: ₹56, ₹60, ₹64, ₹67.

Q3. Which levels are critical to watch?

Watch ₹47–₹44 as the danger zone to avoid. A move above ₹64 is a positive breakout signal.

Q4. Is this a long-term buy?

Potentially yes, if you trust the company's growth plans and sector tailwinds. Keep checking quarterly results and debt progress.

Piyush Sharma

Qualifications: MBA (India), MBA (Australia), Master of Professional Accounting (Australia).

18+ years in the Indian stock market and running this website for 15+ years. Founder of PS International Group and Hamarijeet.com — popular for study-visa guidance, career help, government schemes, jobs and digital product updates.

📘 Facebook 🐦 Twitter