RAYMOND - Swing Trade Analysis

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

Swing Trade Rating: 2.2

📈 Technical Landscape

Current Price ₹688 is slightly above DMA 50 (₹658) and comfortably above DMA 200 (₹585) — bullish tilt, but not strong momentum.

RSI at 50.4: Neutral zone; shows indecision — could swing either way.

MACD at 14.3: Positive crossover suggests short-term upside is building.

Volume is trailing below the weekly average → no strong buying interest yet.

📊 Fundamental Check-In

P/E Ratio: 188 vs Industry PE: 40.2 → Aggressively overvalued.

EPS reported as ₹1,146, which seems inflated or misreported versus current price — possibly an error in reporting.

PEG Ratio −3.17: Negative, indicating earnings growth doesn’t justify high valuation.

Book Value ₹558 vs CMP ₹688: Trading close to intrinsic value — margin of safety thin.

📉 Profitability & Sentiment

ROCE (1.64%) & ROE (0.59%): Poor asset efficiency.

Quarterly PAT dropped from ₹3.98 Cr to ₹24.6 Cr with −6.28% variation — modest improvement, but hardly convincing.

FII and DII holdings dropped significantly (−1.85% and −2.04%) — institutions pulling out.

✅ Positives

Debt-to-equity at 0.20: Strong balance sheet.

Dividend Yield: 1.45%: Offers some cushion.

Strong 52-week recovery (73.6%): Shows swing potential when technicals align.

🎯 Optimal Entry Price

₹640–₹655

Close to DMA 50; look for RSI climbing above 55 and MACD expanding for momentum confirmation.

Favor buying on dips near ₹640 if overall market supports rally.

🚪 Exit Strategy (If Holding)

Target Range: ₹715–₹740

Resistance zone from previous highs.

Stop-Loss: ₹630

Below recent support, exit to avoid larger drawdown.

Raymond shows flickers of swing potential with MACD improving and stable price action above long-term support. However, fundamentals are fragile and valuation is stretched. Entry only makes sense with confirmation of bullish technicals. If you’re already holding, keep an eye on ₹740 levels and rotate out if momentum fades. Want to look into textile peers that offer cleaner swing setups? I’ve got a few in mind. 🧵📊

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