RAYMOND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.5

📊 Core Financials Analysis

Profitability

ROE: 294% — unusually high, likely due to one-off accounting adjustments or asset revaluation; not sustainable.

ROCE: 1.17% — extremely low, indicating poor operational efficiency.

EPS: ₹832 — appears inflated, possibly due to exceptional items; needs deeper audit context.

PAT Qtr: ₹11.8 Cr vs ₹21.9 Cr — sequential decline, with a steep YoY drop of −70.2%.

Balance Sheet & Cash Flow

Debt-to-equity: 0.00 — zero debt, a major strength.

Dividend Yield: 1.60% — modest, adds some income stability.

Cash flows may be inconsistent given weak ROCE and declining profits.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 38.1 Slightly undervalued vs industry PE of 40.7

P/B Ratio ~1.25 Reasonable given book value of ₹499

PEG Ratio 0.22 Undervalued relative to growth potential

Intrinsic Value ₹580–₹610 (est.) Current price slightly above fair value

🧠 Business Model & Competitive Edge

Company Profile: Raymond Ltd is a diversified conglomerate with interests in textiles, apparel, engineering, and real estate.

Strengths

Strong brand equity in premium menswear and suiting.

Diversification into real estate and FMCG segments.

Zero debt and consistent dividend payout.

Challenges

Weak ROCE and declining quarterly profits.

Institutional sentiment cautious — FII and DII holdings both declined.

Operational inefficiencies and margin pressure in core textile business.

According to Moneymint Idea, Raymond’s share price target for 2025 ranges from ₹550 to ₹660, with long-term projections reaching ₹1,900 by 2030

1

.

📈 Technical & Sentiment Overview

RSI: 49.8 — neutral zone, no strong momentum.

MACD: −4.55 — bearish crossover, trend weakness.

DMA 50 & 200: Price hovering between both — trend indecisive.

Volume: Below weekly average — waning investor interest.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹580–₹610 — near intrinsic value and technical support.

Holding Strategy

Suitable for long-term investors seeking brand-led turnaround.

Price targets for FY27 range from ₹750 to ₹900; long-term targets for FY30 range from ₹1,250 to ₹1,900.

Monitor margin expansion, real estate monetization, and retail growth.

Raymond is a legacy brand with diversification potential, but current fundamentals suggest a cautious accumulation strategy. If you're building a portfolio with exposure to consumer brands and real estate, this one deserves a watchlist spot.

1

moneymintidea.com

Edit in a page