Why some recent IPO stocks, in even good sectors, don't take off. Example: Railway Sector
DEFRAIL TECHNOLOGIES (JAN 2026 IPO at Rs.74. Now Rs.70)
DHARA RAIL PROJECTS (Dec 2025 IPO at Rs.126. Now Rs.132)
The products or services, companies offer, matter a lot. If it's a very common product or easily available service, business growth will be tardy. And hence market won't give high valuation. EPS growth also will be most likely, slow and erratic.
Same logic applies to other IPOs too. We can see gigantic TAM๐ but actual market available for the companies will be minuscule, due to competition.
This is why its necessary retail investors to do own study and assessment. Instead of holding on and praying for miracle, better to get out and look for stocks where growth is very much possible.
All of us do hold or would have held such doubtful cases, wondering whether to exit or keep waiting.
NOTE: There can be OPERATOR action suddenly, to drive price up in weak stocks. Operators will exit and stock will fall back. But relying on operators is not investment. ๐
@thechartist26 Actually Oral care business is evolving with consumers moving to Ayurvedic formulations, emergence of D2C brands, & shift towards specific problem solving pastes ( ex sensodyne ) .
All this is leading to long term share loss to Colgate hence.