Raymond in fashion after buzz of investment in unit

Raymond gained 1.93% to Rs 712.75 at 12:00 IST on BSE after the report suggested that the company is going to invest Rs 1400 crore in its new plant at Amravati in a phased manner.

Meanwhile, the S&P BSE Sensex was down 38.24 points, or 0.12%, to 30,920.01. The S&P BSE Mid-Cap index was up 49.50 points, or 0.34%, to 14,518.38.

On the BSE, 30,202 shares were traded in the counter so far, compared with average daily volumes of 1.38 lakh shares in the past one quarter. The stock had hit a high of Rs 721 and a low of Rs 701.70 so far during the day.

The stock had hit a record high of Rs 806.70 on 3 May 2017. The stock had hit a 52-week low of Rs 398.15 on 23 August 2016.

The stock had declined 5.91% in three sessions to Rs 699.25 yesterday, 27 June 2017 from a close of Rs 743.20 on 21 June 2017.

The stock had underperformed the market over the past one month till 27 June 2017, falling 3.35% compared with 0.23% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 9.02% as against Sensex's 5.89% rise. The scrip had also outperformed the market in past one year, gaining 52.01% as against Sensex's 17.25% rise.

The small-cap textile and apparel major has equity capital of Rs 61.38 crore. Face value per share is Rs 10.

Raymond reportedly is going to invest Rs 1400 crore in a phased manner in its new plant at Amravati in Maharashtra, which will go live by the year-end.

The new unit that will produce linen and denim, cotton shirts among other, the company has made an initial investment of Rs 200 crore in the first phase. The facility will employ about 8,000 workers when fully operational.

The plant will be used to produce items to meet the demand of Raymond's own brands as well as for other third parties, report said.

The company is on a retail expansion mode with 300 fresh stores likely to open in the next two years, report added.

Raymond's consolidated net profit fell 40.1% to Rs 33.68 crore on 2.5% decline in net sales to Rs 1473.60 crore in Q4 March 2017 over Q4 March 2016.

The Raymond Group was incorporated in 1925 and is a textiles manufacturer. The company makes finest fabrics - from wool to wool-blended worsted suiting to specialty ring denims as well as high value shirting.

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