IPO blockbusters of 2024: Should you buy more or sell down stakes?

Six out of 101 companies that launched their initial public offerings (IPO) in 2024 went gangbusters, doubling their share price. This is remarkable considering the past 18 months have seen significant gyrations in the market, with a swift and sharp correction between September 2024 and March 2025.

In this environment only companies that have been able to demonstrate strong earnings growth have been rewarded. But stock prices shooting up, should you still stay with these stocks or take profits off the table?

Here is a lowdown on what growth has panned out for the six IPO doublers and what you should do with them.

The largest gainer of the lot, Jyoti CNC Automation with 267% returns from issue price, reported a revenue jump of over 40% YoY in Q4FY25 driven by strong order inflows from the defence and aerospace sectors. Management commentary suggested robust demand visibility across geographies and verticals. While brokerage coverage is limited, the market seems to have rewarded its consistent earnings growth.

At the issue price of Rs 331, the stock was valued at a P/E of 77.52. It touched a best P/E of 76.99, but has now cooled to around 58.84, indicating that the valuation premium has partly rationalised despite the price rally. “Any dip in Jyoti CNC is a buying opportunity given its future prospects in precision manufacturing and the potential of being a vendor for Foxconn,” said Kranti Bathini, Director of Equities, WealthMills Securities, adding that “industrial stocks are expected to do well over the long term.”

KRN Heat Exchanger & Refrigeration with 252% returns, caters to HVAC, cold storage, food processing, and more recently, data centres — sectors benefitting from strong infrastructure and consumption tailwinds. Although the company is not within Bloomberg's coverage for PE evaluation but a look at its latest earnings reveals the company's growth appeal. In its Q4FY25 results, it posted robust topline growth and margin expansion. “This is a niche player in a growing space. Capacity expansion is key going ahead. The valuation is a little stretched, but given limited competition, the stock still holds up,” said Bathini.

Bharti Hexacom, at 193% returns, is a telecom services provider focused on Rajasthan and the Northeast. It benefited from tariff hikes and rising data consumption. In Q4FY25, the company posted a 6% sequential increase in ARPU, while maintaining strong margins — key positives in a capital-intensive business. At listing, it was priced at a P/E of ~27.5. The stock peaked at ~46 and now trades around ~43. Although Kranti Bathini cautioned on its valuations, saying, “For a telecom company, giving a P/E multiple above 50 seems excessive. I wouldn’t buy it at current levels.”

Premier Energies posted 138% returns from issue price and continued to hold onto its promises with strong revenue growth in Q4FY25. This was driven by capacity expansion and policy tailwinds from India’s renewable energy push. The company is seen as a beneficiary of government-backed PLI schemes and demand for domestic solar components. At the IPO price of Rs 380, the stock was valued at a P/E of ~50. It touched a high of ~66 and currently trades at ~40. Bathini said, "Premier Energies, athough promising, it is fully valued at the moment. So, I would wait for valuations to cool before entering.”

Across the EPC space, SRM Contractors posted 103% returns and has reported record revenue and profit in Q4FY25, with margins staying stable. The company has been a beneficiary of government infrastructure spending and faster execution cycles in recent quarters. While small in market cap (~Rs 1,000 crore), the company has maintained quarterly growth and positive commentary. Bathini noted, “I don’t track it closely, but the results are encouraging. Net profits have been improving.”

Interarch Building Solutions operates in the pre-engineered building systems and steel structures space — both beneficiaries of industrial and warehousing demand. Till date, it has posted 102% returns from its listing. In Q4FY25, it reported steady topline growth with margin improvements. Bathini said, “We are bullish on the industrials space. Interarch fits that theme and looks attractive in the long term, though we are not rushing to buy at current valuations.”

So, is it tougher for IPOs in 2025?

Unlike the frothy pricing seen through most of 2024 — where companies often commanded steep valuations despite unproven financials — the IPO environment in 2025 has turned more discerning. “The euphoria of 2024 gave way to realism,” said Siddharth Bhamre, adding that investors now demand visible earnings growth and rational pricing.

Analysts believe that when the mood in the market is euphoric, even highly priced IPOs can deliver strong listing gains. But when that exuberance cools, the scrutiny returns. Investors are choosy, and valuation becomes central. That shift in sentiment seems to have taken hold in 2025. As Bathini adds, “Now we are entering a bullish phase gradually, but investors are still cautious. The trend is becoming very stock-specific. Even if the IPO pipeline looks strong, not everything will find favour if valuations don’t align.”

Several high-profile listings in late 2024 and early 2025 saw muted or even negative listing performance, prompting issuers and bankers to re-evaluate offer pricing. Grey market activity too has seen a pullback, reflecting cautious sentiment. With IPO pricing turning more sober in 2025, the bar for success is higher. Umesh Agrawal of 360 One Asset also emphasised this shift in expectations, saying, “In this environment, investors are no longer chasing just themes—they want earnings visibility and a clear valuation comfort.”Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before making investment decisions.