Raymond rallies 6%, hits 52-week high; stock zooms 163% in one year

Shares of Raymond hit a new 52-week high of Rs 986 after they rallied 6 per cent on the BSE in Monday’s intra-day trade, extending their rally on strong earnings. The stock of the garments & apparels firm surpassed its previous high of Rs 964.15 touched on April 13, 2022. It had hit a record high of Rs 1,152 on May 2, 2018.

In the past one month, the stock has outperformed the market by gaining 18 per cent as compared to 2 per cent decline in the S&P BSE Sensex. In the past three months, it has rallied 33 per cent as against 0.5 per cent fall in the benchmark index. Further, in the past six months, it has soared 53 per cent as compared to 2 per cent decline in the Sensex, and in one year, it has zoomed 163 per cent, as against a 9 per cent rise in the benchmark index.

Raymond has delivered a very strong quarterly performance consecutively in the past two quarters. Capitalizing on the strength of the brand along with expansive network, the company leveraged the growing demand both in domestic and international markets through wide range of product offerings.

"We have witnessed demand recovery across all our businesses to pre-Covid levels and, with our effective cost management, we have delivered the highest profitability for the quarter and the year. With strong focus on deleveraging, through profitability and working capital management, we have generated free cash/lows which has reduced the net debt by around 40 per cent in last two years despite the pandemic,” the management said in an earnings statement.

For January-March quarter (Q4FY22), Raymond reported an over four-fold jump in its consolidated net profit to Rs 264.97 crore, helped by a buoyant demand and strong consumer sentiments during the period. The company had posted a net profit of Rs 58.36 crore in Q4FY21.

Its revenue from operations was up 43.38 per cent year on year (YoY) to Rs 1,958 crore during the quarter under review as against Rs 1,366 crore in the corresponding period of the previous fiscal.

Branded textile segment sales, which accounted 45 per cent of the company’s total sales, recorded healthy 23 per cent YoY growth driven by strong momentum in secondary sales led by wedding related purchases and higher footfalls in retail outlets.

The sales also picked up in primary channels due to upcoming wedding season. The segment reported robust Ebitda margin of 22.7 per cent marginally higher as compared to previous year. Higher realization and operational efficiencies contributed largely to margin performance, the company said.

The management expects consumer demand to stay strong with high number of weddings coupled with social gatherings and opening up of physical workspaces. This will drive healthy footfalls and thereby secondary sales. In the real estate market, the management expects the growth momentum in residential market the commercial and retail markets to be maintained at healthy levels.

Raymond is India's largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabric and garmenting. It has some of the leading brands within its portfolio - 'Raymond Ready to Wear', 'Park Avenue', 'ColorPlus', 'Parx', 'Raymond Made to Measure' and Ethnix by Raymond amongst others.

The group has presence in engineering space and forayed into realty sector through the launch of its maiden project TenX. Raymond also has presence in FMCG sector through Raymond Consumer Care that offers wide range of products in men's personal grooming category and personal hygiene.