RAYMOND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | RAYMOND | Market Cap | 2,630 Cr. | Current Price | 395 ₹ | High / Low | 784 ₹ |
| Stock P/E | 64.7 | Book Value | 296 ₹ | Dividend Yield | 0.00 % | ROCE | 1.17 % |
| ROE | 294 % | Face Value | 10.0 ₹ | DMA 50 | 461 ₹ | DMA 200 | 539 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | -1.27 % | PAT Qtr | -2.85 Cr. | PAT Prev Qtr | 11.8 Cr. |
| RSI | 25.7 | MACD | -16.7 | Volume | 2,44,589 | Avg Vol 1Wk | 2,19,580 |
| Low price | 394 ₹ | High price | 784 ₹ | PEG Ratio | 0.38 | Debt to equity | 0.00 |
| 52w Index | 0.32 % | Qtr Profit Var | -122 % | EPS | 822 ₹ | Industry PE | 33.3 |
📊 Chart Patterns: RAYMOND is trading at 395 ₹, well below both 50 DMA (461 ₹) and 200 DMA (539 ₹). This indicates strong bearish momentum. The price is almost at its 52-week low (394 ₹), reflecting heavy downside pressure and lack of recovery strength.
📉 RSI: At 25.7, RSI is deep in oversold territory, suggesting weak momentum but potential for a short-term technical bounce.
📉 MACD: Negative at -16.7, confirming bearish crossover and continued downward trend.
📊 Bollinger Bands: Price is hugging the lower band, indicating oversold conditions and possible mean reversion.
📈 Volume Trends: Current volume (2.44 lakh) is slightly above average weekly volume (2.19 lakh), showing increased selling pressure rather than accumulation.
📌 Momentum Signals: Strong bearish bias with oversold RSI. A short-term relief rally is possible, but trend remains weak.
🎯 Entry Zone: 390–400 ₹ (near 52-week low support).
🎯 Exit Zone: 455–465 ₹ (near 50 DMA resistance).
📉 Trend: The stock is trending downward with bearish bias, not yet showing reversal signs.
Positive
- 📈 EPS at 822 ₹, showing strong per-share earnings despite volatility.
- 📊 Debt-free balance sheet (Debt-to-equity 0.00) provides financial stability.
- 📈 ROE at 294% appears inflated due to accounting factors, but indicates strong equity returns.
Limitation
- ⚠️ Trading below both 50 DMA and 200 DMA, showing technical weakness.
- ⚠️ Very high P/E ratio (64.7) compared to industry PE (33.3), suggesting overvaluation.
- ⚠️ ROCE at 1.17% shows poor capital efficiency.
- ⚠️ PEG ratio at 0.38 indicates valuation concerns despite growth prospects.
Company Negative News
- 📉 Quarterly PAT collapsed from 11.8 Cr. to -2.85 Cr. (-122%).
- 📉 FII holdings decreased (-0.18%) and DII holdings decreased (-1.27%), showing reduced institutional confidence.
Company Positive News
- 📈 EPS remains strong despite profit decline.
- 📈 Debt-free balance sheet enhances financial resilience.
Industry
- 🏭 Industry PE at 33.3, much lower than RAYMOND’s PE, suggesting sector is more reasonably valued.
- 📊 Textile and lifestyle sector showing moderate growth outlook but facing valuation pressures.
Conclusion
🔎 RAYMOND is trending downward, trading below key moving averages with weak technical indicators. RSI near oversold levels may provide short-term bounce opportunities, but MACD and volume confirm bearish momentum. Entry near 390–400 ₹ with exit around 455–465 ₹ is optimal for traders. Long-term investors should be cautious given collapsing profits, weak ROCE, and declining institutional support despite debt-free status.