Moneyview Shares Trade 30% Above Upper Price Band After Strong Debut

Moneyview shares are trading at a premium of more than 30% above their upper price band of 34 rupees per equity share, despite facing continuous selling pressure during their first month on the stock market. The stock opened flat at 52.59 rupees on the National Stock Exchange and touched an intraday low of 49.84 rupees, marking a loss of over five percent compared to the previous close of 52.64 rupees. Late value buying helped the stock recover some of its early losses to trade around 51.50 rupees.

Market Pressures

Market experts note that the downward trend follows a powerful initial surge that saw the stock list at a heavy premium of over 91%. Analysts point to stretched valuations, profit-taking by early investors, and rising risks in credit and asset quality as the main drivers of the current pressure. SEBI-registered expert Anuj Gupta highlights that as an NBFC and digital credit platform, Moneyview faces scrutiny over the health of its loan book. The company's non-performing assets rose from 0.94% to 2.74% between fiscal years 2024 and 2026, while credit impairment costs increased to 5.16% of average assets under management during a difficult unsecured credit cycle. The stock currently trades at a price-to-earnings multiple of roughly 40 times its reported earnings for fiscal year 2026.

Expert Advice

Despite the valuation rebalancing, experts see limited downside ahead and suggest chances of a rebound. Choice Broking executive director Sumeet Bagadia identifies a strong base at 46 rupees as a crucial support level for the newly listed stock. Bagadia advises current shareholders to hold the scrip while keeping a strict stop-loss at 46 rupees for a target of 65 rupees. He also suggests that fresh investors adopt a buy-on-dips strategy with the same stop-loss and a near-term upside target of the 60 to 65 rupees band.

Context

Initial public offerings frequently experience sharp price corrections after strong opening days as early investors lock in their gains. Stock market analysts closely track asset quality metrics like non-performing assets for non-banking financial companies to gauge their financial health during changing credit cycles.