Raymond surges 12%, hits record high; stock zooms 55% in four months

Raymond share price news: With the acquisition of Maini Precision Products Limited business, Raymond Group aims to venture into sunrise sectors of Aerospace, Defense and EV Components

Shares of Raymond hit a record high of Rs 2,694.95 as they surged 12 per cent on the BSE in Friday's intraday trade, in an otherwise range-bound market, on a healthy business outlook. The stock surpassed its previous high of Rs 2,687.15 touched on June 10. In the past four months, it has zoomed 55 per cent.

At 09:59 AM, Raymond share price was trading 9 per cent higher at Rs 2,622 on the BSE. In comparison, the BSE Sensex was up 0.08 per cent at 77,535.

Raymond is a leading Indian Textile, Lifestyle, and Branded Apparel company. The company has its wide network of operations in local as well foreign markets. The company sells its product through multiple channels including wholesale, franchisee, retail etc. The company is also engaged in the business of real estate constructions/real estate development.

As India continues to be a preferred sourcing destination, the China plus one strategy is playing its part. The management said Raymond is expanding its garmenting capacity by a third of its current levels. This expansion of the capacity, once fully commissioned, will make Raymond the third largest suit maker in the world.

In the beginning of FY24, Raymond Group became net debt free post the sale of its fast moving consumer goods (FMCG) business two years ahead of stated deadline. The company undertook a corporate action of demerging the Lifestyle business from Raymond Limited, a move to unlock value for its shareholders. Post this demerger, there will be two listed companies Raymond Lifestyle (RLL) and Raymond. The realty business and engineering business will be under Raymond.

This demerger will lead to simplification of group structure, investors opportunity, and access to capital. Under the Scheme, every shareholder of Raymond will be entitled to four shares of RLL for every five shares held in Raymond. The company has received shareholders and Creditors approval and is awaiting final approval from the National Company Law Tribunal.

Besides, Raymond, in its FY24 annual report, said the company anticipates maintaining a profitable growth trajectory. In the domestic market, consumer sentiment is expected to remain positive, driven by the approach of wedding and festive seasons and surging demand for formal and daily wear categories. The company aims to introduce new initiatives to bolster growth.

In the branded apparel segment, Raymond aims to diversify its product range through demerging its lifestyle business, facilitating new launches in its core portfolio, emphasizing casualisation and expanding the 'Ethnix' wear category.

Separately, with the acquisition of Maini Precision Products Limited (MPPL) business, the Raymond Group aims to venture into sunrise sectors of Aerospace, Defense and EV Components. On the other hand, the real estate market is poised for sustaining its growth momentum, buoyed by factors such as increased affordability, supportive government policies, a revival in the consumption cycle and an increasing demand to upgrade homes, Raymond said.

Meanwhile, according to media reports, a proxy advisory firm has recommended the shareholders of the leading textile and fabric manufacturer Raymond to vote against the reappointment of Chairman & Managing Director Gautam Singhania on the board of the company. CLICK HERE FOR FULL REPORT