Raymond soars 12%, hits 52-week high on heavy volumes

In the past three months, the stock has outperformed the market by surging 39 per cent after the company reported robust earnings for December quarter (Q3FY22).

Shares of Raymond hit a 52-week high of Rs 840.95, on rallying 12 per cent on the BSE in Wednesday’s intra-day trade on the back of heavy volumes.

The stock of the textiles company surpassed its previous high of Rs 818.25 touched on January 27, 2022. Some of the leading brands within its portfolio are – ‘Raymond Ready to Wear’, ‘Park Avenue’, ‘ColorPlus’, ‘Parx’, ‘Raymond Made to Measure’ and Ethnix by Raymond, among others.

In the past three months, the stock has outperformed the market by surging 39 per cent after the company reported robust earnings with a consolidated net profit of Rs 100 crore for the December quarter (Q3FY22). It had posted a profit of Rs 22 crore in the year ago quarter (Q3FY21). In comparison, the S&P BSE Sensex was up 4 per cent during the same period.

The company’s net revenue during the quarter rose 45 per cent year-on-year (YoY) to Rs 1,871 crore from Rs 1,286 crore in Q3FY22. Earnings before interest, taxes, depreciation, and amortization (ebitda) margins improved 400 bps points at 16.2 per cent from 12.2 per cent in the previous year quarter.

In domestic markets, improved consumer sentiments and strong festive & wedding season demand across our B2C businesses and strong momentum of export orders maintained in garmenting and engineering businesses helped in achieving growth in revenues during the quarter. While, the continued focus on cost optimization enabled reduction in overall operating cost in Q3FY22. The management said the company generated free cash flows to reduce debt and are progressing towards being a net debt free business.