RAYMOND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.4

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📊 Fundamental Analysis Report

• Stock Code: RAYMOND
• Market Cap: ₹3,826 Cr
• Current Price: ₹576
• 52W High/Low: ₹784 / ₹421
• EPS: ₹822
• Stock P/E: 94.2 vs Industry P/E: 42.4 ❗
• PEG Ratio: 0.55 🟢 (Undervalued vs Growth)
• Book Value: ₹296 | P/B Ratio: ~1.95 ✅
• ROE: 294% | ROCE: 1.17% ❗
• Debt to Equity: 0.00 🟢 (Debt-Free)
• Dividend Yield: 0.00% 🚫
• Quarterly PAT: -₹2.85 Cr (↓124%)
• RSI: 43.0 | MACD: -6.20 📉

✅ Positive

• Debt-free balance sheet enhances financial resilience and flexibility.
• PEG ratio below 1 suggests potential undervaluation relative to growth.
• Book value supports fair asset-based valuation.

⚠️ Limitation

• Extremely high P/E ratio indicates overvaluation compared to industry peers.
• ROCE is very low, signaling poor capital efficiency.
• Zero dividend yield offers no passive income.
• Technical indicators (MACD, RSI) show weak momentum.

📉 Company Negative News

• Quarterly PAT turned negative, falling from ₹11.8 Cr to -₹2.85 Cr.
• FII and DII holdings declined, reflecting reduced institutional confidence.

📈 Company Positive News

• EPS appears inflated due to accounting adjustments, but needs deeper review for sustainability.
• Stock has gained 42.7% over the past year, showing investor interest despite recent volatility.

🏦 Industry

• RAYMOND operates in the textile and lifestyle segment.
• Industry P/E of 42.4 is significantly lower, suggesting RAYMOND trades at a premium.
• Sector benefits from brand loyalty, fashion cycles, and festive demand.

🧭 Conclusion

• Entry Zone: ₹550–₹570 (near support and RSI neutral)
• Long-Term View: Brand strength and asset value support cautious optimism. Accumulate selectively while monitoring earnings recovery and valuation metrics.