Raymond is looking to Fly the Sky #SuperChartz

16 Jan

Key levels:

Support: 1800 on a closing basis

Resistance: 1920, 1980, 2080, 2185

Description:

Fundamentals:

Business Overview:

Raymond Limited, established in 1925, is a diversified group with interests in Textile & Apparel sectors, Real Estate, FMCG, Engineering, and international markets.
It is a leading vertically and horizontally integrated manufacturer of worsted suiting fabric globally.
Business Segments Post Demerger:

The company will focus on Real Estate, Engineering, and Denim (Joint Venture) while retaining its flagship brand, Raymond.
Brands:

Notable brands include Raymonds, Colour Plus, Parx, Park Avenue, and new ventures like Ethnix.
Strong retail presence with 1,638 stores, including 49 overseas stores in nine countries.
Revenue Mix FY23:

Branded Textile: 40%
Branded Apparel: 16%
Garmenting: 13%
High-Value Cotton Shirting: 9%
Engineering: 10%
Real Estate: 13%
Joint Ventures:

Raymond UCO Denim (JV) manufactures specialty ring denim with a capacity of 56 million meters per annum.
FMCG presence through Raymond Consumer Care (50% JV) in personal hygiene products.
Raymond Realty:

Started real estate business in 2019, with planned development on 20 acres, receiving significant booking values.
Financials and Debt Reduction:

Market Cap: ₹12,351 Cr.
Debt reduced to ₹689 Cr. as of FY23.
The company sold its FMCG business, reducing debt and becoming cash surplus.
Demerger:

Demerger of core Lifestyle business ongoing since 2019, aiming for two independent, debt-free entities with significant liquidity surplus.

Technicals:

Stock Performance:

Current Price: ₹1,855
High / Low: ₹2,240 / ₹1,093
Stock P/E: 7.51
Financial Ratios:

ROCE: 21.4%
ROE: 22.9%
Debt to Equity: 0.82
Price to Earning: 7.51
Market Performance:

Return over 3 months: 2.35%
Return over 3 years: 75.5%
Enterprise Value and Sales:

EV/EBITDA: 6.53
Enterprise Value: ₹15,469 Cr.
Sales: ₹8,343 Cr.
Miscellaneous:

Book Value: ₹630
Dividend Yield: 0.16%
OPM: 13.9%
Price to Book Value: 2.95
EPS: ₹227
Industry PE: 35.3
Return on Assets: 7.86%
Current Ratio: 1.77


In short, Raymond Limited demonstrates strong fundamentals with diversified business segments, successful brand portfolio, and strategic moves like demerger and debt reduction. Technically, the stock shows stable financial performance, moderate valuation, and positive market returns.