Shares of textile manufacturer Raymond surged 12 percent in intra-day deals today to hit a record high of ₹2,694.95 apiece. The stock is now over 81 percent higher than its 52-week low of ₹1,487, hit on December 1, 2023.
The rise in Raymond comes on the back of a strong business outlook as well as new acquisitions recently.
The stock has gained almost 40 percent in last one year and over 56 percent in 2024 YTD. It jumped 49 percent just since April 2024.
Raymond shares have risen almost 14 percent in June so far, extending gains for the third straight month. It advanced 5 percent in May and 16.3 percent in April. However, the stock shed 1.4 percent in March. Before that it was positive for the first two months of the current calendar year, adding 3.4 percent in February and 2.9 percent in January.
It has also given multibagger returns in the long term, surging over 613 percent in 3 years.
Earlier this month, Raymond Realty, a subsidiary of Raymond, bagged a second redevelopment project in Bandra (East), which is projected to generate a revenue of more than ₹2,000 crore over the project period. This project spreads over an area of 2 acres. This expansion in projects is in line with the company’s aggressive growth plans for Real Estate development in the Mumbai Metropolitan Region, it had said in an exchange filing.
Raymond Realty had previously signed 3 JDAs in Bandra, Sion, and Mahim with an estimated revenue potential of over ₹5,000 crore.
Earlier this year, Raymond announced the acquisition of a 59.25% stake in Maini Precision Products Limited (MPPL) for ₹682 crore, financed through a combination of debt and internal resources. This move aims to transform Raymond’s engineering division into a major player in engineering, automotive, electric vehicle (EV), aerospace, and defence components.
The acquisition consolidates JK Files, RPAL, and MPPL into a new subsidiary, ‘Newco’, where Raymond Ltd will hold a 66.3 percent stake. Chairman Gautam Hari Singhania anticipates significant growth opportunities in sectors like aerospace, defence, and EV.
In the March quarter, Raymond reported an 18 percent increase in its net profit driven by robust demand in its real estate segment. Consolidated profit for the three months ending March 31 rose to ₹229 crore as against ₹194 crore a year earlier. Revenue from operations also grew by 21 percent during the quarter to ₹2,608.5 crore.
The company noted significant momentum in its real estate segment, especially following the launch of its inaugural joint development project in Bandra, Mumbai. This segment now contributes 25 percent to the revenue mix, with its revenue more than doubling in the quarter. Meanwhile, the textile segment, the largest in terms of revenue, experienced a modest 2 percent growth due to subdued customer demand and challenging market conditions.
Raymond’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin also expanded to 19.2 percent in Q4FY24, up from 17.3 percent the previous year.
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Published: 21 Jun 2024, 02:31 PM IST
