RAYMOND - Investment Analysis

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

Investment Rating: 2.7

📊 Fundamental & Valuation Analysis

Raymond Ltd is a legacy textile and engineering conglomerate undergoing significant transformation. While its brand strength and diversified segments offer long-term potential, the current financial metrics suggest caution.

🔍 Key Metrics Breakdown

Metric Value Interpretation

Market Cap ₹4,585 Cr Mid-cap, post-demerger

Current Price ₹688 Near 200 DMA, recovering from demerger

Book Value ₹558 P/B ~1.23 → Fairly valued

Stock P/E 188 Extremely overvalued vs Industry PE (40.2)

ROE 0.59% Weak return on equity

ROCE 1.64% Poor capital efficiency

Dividend Yield 1.45% Decent income generation

Debt-to-Equity 0.20 Low leverage, positive

PEG Ratio -3.17 Negative growth outlook

EPS ₹1,146 Inflated due to demerger accounting

📉 Technical & Trend Analysis

RSI (50.4): Neutral zone, no strong momentum

MACD (14.3): Bullish crossover, early signs of recovery

DMA 50 & 200: Price above both, indicating short-term strength

Price Trend: Down ~64% from 52-week high due to demerger

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✅ Long-Term Investment Outlook

Raymond Ltd is not currently a strong long-term investment based on

Extremely high P/E and negative PEG

Weak ROE/ROCE despite low debt

Recent demerger of Raymond Realty, which removed a high-growth segment

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However, if the engineering and branded apparel businesses stabilize and grow, the stock could regain momentum.

🎯 Ideal Entry Price Zone

Based on valuation and technical support

Buy Zone: ₹620–₹660

Near post-demerger support levels

Offers margin of safety if turnaround materializes

🧭 Exit Strategy (If You Already Hold)

If you're holding Raymond Ltd

🔄 Short-Term Traders

Exit near ₹750–₹780, which is a resistance zone

Use trailing stop-loss below ₹670

🕰️ Long-Term Investors

Hold only if you believe in post-demerger growth

Reassess if ROE/ROCE don’t improve above 10% in next 2–3 quarters

Exit if price breaks below ₹620 with volume confirmation

⏳ Suggested Holding Period

Speculative Hold: 6–12 months

Long-Term Hold: Only if profitability metrics improve and new business segments show growth

Would you like a comparison with Raymond Realty or Raymond Lifestyle to assess which post-demerger entity offers better long-term potential?

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www.news18.com

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www.indmoney.com

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