Raymond slips on reports of decline in demand

Raymond fell 2.21% to Rs 475.25 at 11:32 IST on BSE on reports the company has seen nearly 30% decline in demand since demonetisation was announced last month.

Meanwhile, the BSE Sensex was down 56.13 points, or 0.21%, to 26,433.43.

On the BSE, so far 15,000 shares were traded in the counter, compared with average daily volumes of 66,725 shares in the past one quarter. The stock had hit a high of Rs 480.30 and a low of Rs 471.55 so far during the day.

The stock hit a record high of Rs 654 on 1 November 2016. The stock hit a 52-week low of Rs 351.50 on 12 February 2016. The stock had underperformed the market over the past 30 days till 16 December 2016, falling 5.12% compared with the 1% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 1.94% as against Sensex's 7.38% decline.

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

Raymond CEO Sanjay Behl was quoted by the media as saying that the company has seen a nearly 30% decline in demand since demonetisation was announced. He, however added that he expects the situation easing up in the beginning of next year.

The media report suggested that Raymond's expansion plans will not be affected by the current situation. It has 1,060 stores at present, and will continue to add about 150-200 stores every year for the next three years. The company is targeting about 1,500 stores for its brands by 2020, Sanjay Behl said.

On a consolidated basis, net profit of Raymond rose 367.31% to Rs 26.59 crore on 12.10% rise in net sales to Rs 1553.49 crore in Q2 September 2016 over Q2 September 2015.

With over 60% market share in India, Raymond is one of the largest integrated manufacturer of worsted fabric in the world.

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