RAYMOND - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📈 Positive

• 📉 Debt-to-equity ratio of 0.00 reflects a clean balance sheet with no leverage risk.
• 📈 PEG ratio of 0.55 suggests reasonable valuation relative to long-term growth potential.
• 📈 EPS of ₹822 is unusually high, possibly due to exceptional items or accounting adjustments.
• 📉 Price is near support zone (₹572), offering a potential low-risk entry for a technical bounce.

⚠️ Limitation

• 📉 RSI at 42.0 and MACD at -6.34 indicate weak momentum and bearish sentiment.
• 📉 Price is below both DMA 50 (₹597) and DMA 200 (₹593), confirming a short-term downtrend.
• 📉 Volume (1.37 lakh) is below 1-week average (1.94 lakh), showing reduced market interest.
• 📉 P/E of 93.8 vs industry P/E of 41.3 signals significant overvaluation.
• 📉 ROCE of 1.17% and ROE of 294% suggest extreme volatility and poor capital efficiency.
• 📉 PAT turned negative at ₹-2.85 Cr. from ₹11.8 Cr., a 122% decline QoQ.
• 📉 FII and DII holdings declined, reflecting waning institutional confidence.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over inconsistent earnings, weak margins, and valuation risks in the lifestyle and textile segment.

✅ Company Positive News

• 👔 RAYMOND remains a strong brand in the premium apparel space with diversified product lines.
• 📈 Strategic restructuring and asset monetization may support future profitability.

🏦 Industry

• 🧵 Operates in the textile and lifestyle retail sector, which is cyclical and sensitive to consumer demand and fashion trends.
• 📊 Industry P/E of 41.3 reflects moderate optimism and growth expectations.

🧾 Conclusion

• 📉 RAYMOND shows signs of technical weakness and earnings volatility, making it a speculative swing trade candidate with valuation caution.
• 📍 Optimal entry: ₹560–₹570 (near support and oversold zone).
• 🚪 Exit if held: ₹600–₹610 (near DMA 50) unless momentum improves.
• ⚠️ Suitable for swing trading only with tight stop-loss and close monitoring of earnings and volume trends.

I can also help compare RAYMOND’s setup with peers like Arvind or Aditya Birla Fashion to identify stronger swing opportunities.