Pine Labs share price extends gains, jumps over 4%. Should you buy or sell?

Pine Labs share price extended gains on Monday, after making a strong debut in the Indian stock market last week. Pine Labs shares rallied as much as 4.19% to ₹261.85 apiece on the BSE. Today’s high translated into a jump of nearly 19% from its issue price.The equity shares of the digital payments solutions provider Pine Labs were listed on the Indian stock exchanges on November 14, after the conclusion of its initial public offering (IPO).Pine Labs shares were listed at ₹242 apiece on BSE and NSE, which was at a premium of 9.5% to the issue price of ₹221 per share. The stock ended with a gain of 14% on the listing day.Buying momentum in Pine Labs shares continued on Monday as around 91 lakh equity shares of the company changed hands on the stock exchanges.Pine Labs IPO was open from November 7 to 11, and Pine Labs IPO listing date was November 14, Friday.Analysts believe Pine Labs’ better than expected listing showed investor confidence in the company’s strong fundamentals, and leadership position across digital payments and commerce-tech solutions.Post listing of shares, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd maintained his long-term ‘Hold’ recommendation for allotted investors. For non-allotted investors, he advised a wait-and-watch approach until valuations stabilised and the stock found a sustainable post-listing range.“We believe Pine Labs presents a compelling long-term opportunity as one of India’s leading and globally expanding commerce technology platforms. Its business sits at the strategic intersection of payments, fintech, merchant solutions, and digital infrastructure, giving it multi-dimensional monetisation avenues,” said Tapse.According to him, Pine Labs stock price continues to command a premium due to its market leadership across merchant payments and POS-based fintech solutions, high contribution margins driven by software-led and subscription-based revenue, scalable digital infrastructure enabling strong operating leverage, expanding addressable market across India and Southeast Asia Focus on high-margin value-added services (VAS) and tech-driven merchant monetisation.“Overall, while near-term valuations remain elevated, the long-term structural growth story remains intact. With strong execution, deep merchant relationships, and rising digital payments penetration, we remain optimistic on Pine Labs’ long-term growth trajectory and believe it can deliver value to patient investors,” Tapse said.Pine Labs IPO DetailsPine Labs IPO was open from November 7 to 11, and the IPO allotment date was November 12. Pine Labs IPO listing date was November 14.The company raised ₹3,899.91 crore from the book-building issue, which was a mix of fresh issue and an offer-for-sale (OFS). Pine Labs IPO price band was set at ₹210 to ₹221 per share. The IPO was subscribed 2.46 times in total.At 10:00 AM, Pine Labs share price was trading 0.62% higher at ₹252.85 apiece on the BSE.Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.