RAYMOND - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 2.2

📊 Based on the given parameters, RAYMOND is a weak candidate for swing trading. The stock trades at a very high P/E (69.8 vs industry 33.7), suggesting overvaluation. Technical indicators (RSI 22.0, MACD -24.9) show strong bearish momentum, and the company reported a quarterly loss (-2.85 Cr vs 11.8 Cr profit previously). While EPS appears inflated (822 ₹) and debt-to-equity is zero, efficiency metrics (ROCE 1.17%) remain poor. The stock is trading well below DMA 50 and DMA 200, confirming a downtrend.

💡 Optimal Entry Price: Around 420–425 ₹ (near 52-week low support).

🚪 Exit Strategy: If already holding, consider exiting near 450–460 ₹ resistance or on breakdown below 420 ₹.

✅ Positive

• 📉 Debt-free balance sheet (Debt-to-equity 0.00)
• 📊 EPS reported at 822 ₹
• 📈 Strong historical brand presence in textile and lifestyle sector

⚠️ Limitation

• 📉 Extremely high P/E ratio (69.8 vs industry 33.7)
• 📊 Weak ROCE (1.17%) and poor efficiency
• 📉 No dividend yield (0.00%)
• 📊 RSI oversold (22.0), reflecting bearish sentiment

🚨 Company Negative News

• 📉 Quarterly PAT turned negative (-2.85 Cr vs 11.8 Cr)
• 📊 Decline in FII (-0.18%) and DII (-1.27%) holdings

🌟 Company Positive News

• 📈 EPS remains high despite losses
• 📊 Debt-free structure provides financial stability

🏭 Industry

• 📊 Industry PE at 33.7, much lower than RAYMOND’s valuation
• 📈 Textile and lifestyle sector facing cyclical demand pressures but long-term growth potential

📌 Conclusion

RAYMOND is not an attractive swing trade candidate currently due to overvaluation, weak efficiency metrics, and bearish technical signals. Entry near 420–425 ₹ may offer limited upside, while exits should be targeted near 450–460 ₹. Traders should remain cautious and use strict stop-loss management given fragile fundamentals and negative earnings momentum.

I can also prepare a comparison of RAYMOND with another textile peer to highlight relative swing trade opportunities.