Pine Labs correction deepens as stock slips 29% below IPO price. Why are analysts warning against bottom fishing?
Why it matters: Pine Labs' stock has eroded 35% in 2026, with 133 recent IPOs now trading below their issue price.
- Pine Labs stock has fallen 45% from its peak of Rs 284 and 35% in 2026, with an 18% drop in March alone, now trading 29% below its IPO price.
- The company posted a consolidated net profit of Rs 42 crore in Q3FY26, a significant turnaround from a Rs 57 crore loss year-ago, with revenue rising 24% to Rs 744 crore.
- Kranthi Bathini of WealthMills Securities attributes the decline to 'dying euphoria' in primary markets and 'weak secondary markets,' noting that 133 of 219 recent IPOs are now below their issue price.
- Dr. Ravi Singh of Master Capital Services states the stock's chart remains weak with a clear downtrend, suggesting a potential slip to Rs 130 if it breaks below Rs 150, though he sees long-term potential in digital payments.
- Analysts Bathini, Singh, and Nilesh Jain of Centrum Finverse unanimously recommend avoiding fresh buying, with Singh suggesting a better entry only if the stock sustains above Rs 174.
Pine Labs' stock has plummeted 29% below its IPO price, despite the company reporting a profitable Q3FY26 with a net profit of Rs 42 crore and a 24% revenue increase. Analysts warn against 'bottom fishing,' citing elevated valuations and a weak technical chart, advising investors to avoid fresh buying for now.
