RAYMOND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 2.8

🧾 Financial Strength & Quality Overview

Quarterly Earnings

PAT rebound to ₹24.6 Cr from ₹3.98 Cr — promising uptick after prior weak showings.

EPS: ₹1,146 seems anomalously high, possibly a data input issue or linked to exceptional income/split event; doesn’t reflect standard profitability ratios.

Return Metrics

ROE: 0.59%, ROCE: 1.64% — extremely low efficiency; capital is underutilized.

Debt-to-Equity: 0.20 — conservative balance sheet with limited financial risk.

Dividend Yield

1.45% — decent passive income, could appeal to long-term investors.

📊 Valuation & Market Sentiment

Indicator Value Insights

P/E Ratio 188 Highly stretched; not justified by fundamentals

P/B Ratio ~1.23 Modestly above book — reflects undervalued sentiment

PEG Ratio –3.17 Negative suggests declining or erratic growth

RSI 50.4 Neutral — balanced sentiment

MACD 14.3 Bullish momentum — short-term uptrend visible

Price vs DMA ₹688 vs DMA50 ₹658 / DMA200 ₹585 Trading above support lines — technical strength

52W Position: Trading at ~73.6% of 52-week high — room for bounce but sentiment cautious.

FII/DII Trends

FIIs and DIIs both reducing exposure — signals loss of institutional confidence.

🧵 Business Model & Strategic Context

Sector: Textile & Lifestyle — brand-heavy, cyclical demand.

Strengths

Iconic brand identity with real estate monetization potential.

Focus on premium suiting and retail verticals may drive brand-led expansion.

Weaknesses

Fragile margin structure, inconsistent earnings, and questionable scalability.

Highly speculative valuation — may not match operational reality.

🎯 Investment Strategy

Entry Zone: ₹650–₹675 — fair re-entry region near 50-DMA and psychological support.

Long-Term Perspective

Suitable only for seasoned investors willing to bet on brand recovery or real estate unlocks.

Earnings trajectory and margin revival must be validated across at least 2–3 quarters before conviction builds.

If you're considering brand-led plays or real estate-backed monetization stories, I could line this up next to ABFRL or Trent to uncover margin resilience, growth optionality, and valuation leverage. Just say the word and we’ll stitch together the narrative.

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