Lovable Lingerie shares skyrocketed, rising 109% to Rs 428.5 on Friday from the IPO price of Rs 205 in just about a week. The stock even touched a high of Rs 462.50 during the week. However, experts advise caution. Sharad Rathi, associate director at Almondz Global Securities, said, "The rally in Lovable Lingerie is more a momentum play with hardly any genuine interest. The valuations seem to be a bit out of whack." The small public float of about 50 lakh shares out of a total 1.68 crore outstanding shares, and low delivery volumes between 2% and 9%, suggest limited genuine trading. Despite the stock gaining to the daily limit on some days, actual shares traded were often in single digits. Top shareholders include HDFC Mutual Fund, SBI Funds, UTI Asset Management and Fidelity. This rally occurred while the Sensex slipped 2.6% and the BSE IPO index gained 1.6%. Compared with peers, Lovable trades at 31 times forecast earnings for fiscal 2012, slightly higher than Page Industries’ 27 times. The company’s Rs 93-crore IPO was well-received, oversubscribed up to 98.5 times in the wealthy individual category. Anand Rathi Securities noted, "Rising disposable incomes and growing awareness about personal hygiene are boosting growth of the innerwear market in India." But they also warned of risks like rising raw material prices and growing competition. Investors eyeing Lovable should weigh the rapid price rise against its low trading volume and stretched valuation.