Raymond Share: A Comprehensive Analysis for Investors

The Raymond share has grabbed headlines recently with wild price swings, stirring curiosity among investors. Raymond Ltd is a household name in India’s textile and apparel industry, known for premium suiting fabrics and branded clothing. In this blog, we break down everything from Raymond’s business background to its stock charts, and analyze whether the company’s prospects warrant buying its stock. We’ll use simple, conversational language and include key data and expert views to help general investors understand the story behind the Raymond share.

Background of Raymond Ltd

Raymond Limited, established in 1925, is one of India’s oldest and most diversified manufacturing groups. It is one of the world’s leading producers of worsted fabrics, claiming roughly 60% of the Indian worsted suiting fabric market. The company’s flagship brands (like Raymond, Parx, ColorPlus, and Manzoni) are known for men’s apparel and fabrics. In recent years, Raymond has also ventured into retail (with ~1,638 stores nationwide), real estate development, and engineering products (files, tools, aerospace components). Today, Raymond has a presence in over 55 countries and operates a vertically integrated supply chain for suiting fabrics.

Over the decades, Raymond expanded beyond textiles. It acquired the KamaSutra condoms business (jointly with J.K. Ansell) and J.K. Files & Tools (global leader in files and rasps), diversifying revenue streams. In 2024-25, Raymond reorganized into three focused verticals – Lifestyle, Real Estate, and Engineering – through demergers. This was done to unlock value and let each business pursue its own growth path. The Raymond share price history reflects these changes: it hit an all-time high near ₹3,496 before adjusting in mid-2025. This background of dominant textile market share and ongoing restructuring is key context for understanding the stock’s performance.

Fundamental Analysis

Revenue and Profit Trends: In the last few years, Raymond’s revenue and profits have seen ups and downs due to structural changes. According to recent results, FY2025 was a strong year for the consolidated group (with real estate included). Total income surged 85% YoY to ₹2,105 crore in FY25. For Q4 FY25 alone, revenue nearly doubled to ₹601 crore (vs ₹309 crore a year earlier). This jump was driven by the real estate arm: Raymond Realty recorded ₹766 crore in Q4 FY25 (up 13% YoY) with healthy bookings. In fact, the realty business had a booking value of ₹636 crore in Q4, signalling strong demand for its projects.

After all adjustments, the remaining Raymond Ltd (post-demerger) had net cash of ₹696 crore by Q3 FY25 – meaning it holds more cash than debt. The company’s EBITDA margin was around 16% in FY25, reflecting decent profitability even after accounting for demerged units. Importantly, Raymond has reduced debt significantly as it built cash reserves. This strong balance sheet gives the company flexibility to invest or weather downturns.

Key Financial Ratios: Valuation ratios for Raymond look unusually low after the recent share drop. For example, the trailing P/E is only about 0.5x (the stock price is roughly one-half of last year’s EPS), and the price/book value is about 1.03× (the share price ~₹556 vs book value ₹539). In practical terms, this means the market price is near the company’s net asset value. Moneycontrol’s stock insights even describe Raymond as having “superior financial strength” and a “high growth trend” – the only caveat being that current valuations are high due to past share prices (pre-correction).

On the other hand, five-year sales growth has been negative (~–21% over five years). This drop largely reflects the restructuring (the lifestyle and real estate spin-offs removed revenue from the parent company’s books). If we look at the core business (textiles & engineering) alone, the downturn is not as severe. Still, the growth figures have been weak, which is a risk factor (discussed below).

Dividend and Share Metrics: Raymond has a history of paying dividends. For FY2023-24, the company declared a final dividend of ₹10 per share (giving a ~1.8% yield at current prices). In prior years, dividends were typically ₹3 per share, so the board has upped payouts recently. The current dividend yield (~1.8%) is modest but healthy for a manufacturing firm.

The share structure is also worth noting: promoters own about 48.8% of Raymond, with the rest free-float. This level of ownership has remained stable. Overall, fundamental indicators (strong balance sheet, reasonable dividend, book value support) make Raymond look undervalued on paper after the price adjustment.

Summary of Fundamentals: In summary, Raymond’s fundamentals are actually quite strong under the surface – the balance sheet is net-cash, recent divisions of business are profitable, and core products dominate their market segments. The negative growth stats are largely due to one-off corporate actions, not operational failure. Long-term investors might view the current prices as an opportunity, given the company’s brands, cash position, and the fact that it’s now focused on “pure-play” businesses.

Technical Analysis

Technically, Raymond’s share price is in a steep correction phase after the recent corporate spin-off. The drop happened abruptly on May 14, 2025, as the stock went ex-dividend for the real estate demerger. On that day, the share traded roughly between ₹523 and ₹551 – this range now acts as short-term support. In fact, the Moneycontrol data shows the stock briefly hit a low of ₹523 on the ex-date, implying buyers stepped in around that level.

Currently, a key support level is near ₹520–530 (book value per share is ~₹539, which may provide psychological support). On the upside, initial resistance may appear around ₹600–700, which were minor pivot points before the crash. Beyond that, major resistance lies in the ₹1,000+ range (around previous consolidation levels) and again near last year’s highs (₹1,500–1,600). A sustained move above even ₹1,000 would require significant fundamental news or general market strength.

In terms of indicators, short-term charts are extremely oversold. Investing.com’s technical ratings give Raymond a “Strong Sell” signal on moving averages (11 sell vs 1 buy signal across MA5–MA200). Similarly, momentum oscillators (RSI, MACD) would likely be in the oversold territory after such a sharp decline. This heavy bearish bias is a technical reflection of the price drop, not an independent story. Traders often wait for stabilization before calling a bottom in such cases.

On the daily chart, the 50-day moving average and 200-day moving average have turned downward, but they are far above the current price (since they still reflect values before May). Short-term traders might watch for a bounce into the 50-D MA. Meanwhile, volume spiked on the drop day, then subsided, indicating most selling was likely forced by the demerger event. If momentum shifts and the price holds above ~₹530, it could attract short-term buyers thinking the worst is over.

Key Technical Levels:

• Support: ~₹520–530 (recent low, near book value).
• Resistance: ~₹600–650 (near recent highs before demerger day) and above ₹1,000 (former base).
• Moving averages: Short-term MAs are still far above current price, but 50-day and 200-day trends are downward.

In summary, technical indicators currently point to a heavy sell (not surprising given the drop). However, most of this “sell” is technical – the stock was simply adjusted for the demerger, not crashed by market panic. Long-term investors might see the chart sitting at a potential bottom zone, but it’s wise to be cautious until there’s a clear uptrend (like a higher low and higher high on the chart).

Performance Overview (5–10 Years)

Over the last decade, Raymond’s stock performance has seen distinct phases. From around 2015 to 2020, the share mostly traded in the low hundreds (₹100–₹300), reflecting a stagnant period for textiles. Starting 2021, Raymond underwent a turnaround strategy, diversifying into lifestyle and real estate. This sent the stock on a bull run: by early 2024 it peaked at ~₹3,496 (its all-time high), driven by optimism in its new real estate projects and branded-apparel spin-offs.

However, with two major corporate actions (lifestyle demerger in mid-2024 and realty demerger in 2025), much of that value has been reallocated. If you look at a 5-year chart, the stock effectively soared from a few hundred rupees to nearly ₹3,500, then collapsed back to around ₹550 as of May 2025. This roller-coaster illustrates both the potential and the volatility.

One way to see long-term performance is return over the period. A buy-and-hold from early 2023 (say, ₹500) to now (₹550) might show a modest profit, but if you had held through the peak in 2024, you would have lost roughly 80% from the high. Of course, part of that drop is technical – shareholders received equivalent value in new shares of spun-off companies. For example, for every Raymond share held, investors got one share of Raymond Lifestyle (listed 2024) and one share of Raymond Realty (listing FY26). That means a true long-term holder still owns combined equity in the original businesses, albeit split.

In summary, the stock’s 5–10 year performance has been volatile but value-creating. The fundamentals underlying the rise (new projects, brands) are intact, but investors have to navigate corporate events. Recent years’ stellar highs and lows largely cancel out when considering total returns (price changes plus spin-off values). Long-term shareholders have had mixed results so far, but the story of value unlocking (via demergers) is still playing out.

Investment Rationale for Long-Term Investors

Why might a long-term investor consider Raymond share now? There are several points in its favor:

• Undervalued Valuations: As noted, Raymond now trades at a bargain valuation (P/E ~0.5x, P/B ~1x). If the business fundamentals improve or simply normalize, there could be large upside. Historically, businesses with net cash and low valuations can see sharp rebounds once sentiment turns.
• Strong Business and Brands: Raymond’s core textiles business remains a leader (worsted suiting fabrics, brands like Raymond and Parx). The company is vertically integrated and has a wide distribution network. This moated position (60% market share in worsted fabrics) means it can defend profits once macro conditions stabilize.
• Value Unlocking Strategy: The management’s strategy of splitting the company into focused arms could add value over time. For example, Raymond Realty has a pipeline of projects worth ₹40,000 crore, and will list separately (expected by Q2 FY26). As these parts operate independently and get market capitalization, overall shareholder value can grow. Similarly, Raymond Lifestyle Ltd (apparel spin-off) is already trading, and its performance could lift the group’s returns.
• Cash-Rich and Low Debt: Raymond remains a net-cash company with minimal borrowings. That reduces risk and means the company could even consider stock buybacks or higher dividends in the future if management chooses. A strong balance sheet is a big plus for long-term stability.
• Significant Pipeline in Realty: The new real estate arm (Raymond Realty) delivered strong Q4 results (₹766 Cr revenue, ₹194 Cr EBITDA) and has signed JDAs worth ~₹6,800 Cr GDV recently. If these projects execute well, both the Realty entity and the parent (through any profit share or smaller segments) stand to benefit.
• Dividend Potential: Although Raymond’s dividend yield is modest (~1.8%), the fact that it pays a healthy cash dividend indicates steady cash flows. Over time, dividend payouts could increase in proportion as the company grows.

That said, investors should also consider the risks and time horizon (next section). But from a strictly long-term view, Raymond’s current low price, combined with strong brands and a strategy to unlock value, make it an intriguing candidate for value investors. According to expert analyses, this plunge was “not a crash” but a technical adjustment, suggesting that any further downside beyond current levels might be limited if no other bad news emerges.

Recent News and Updates Influencing Raymond Share

The biggest recent event for Raymond share was the demerger of Raymond Realty, which took effect in May 2025. Under the scheme, every Raymond shareholder got one share of Raymond Realty for each share held. On the ex-date (May 14, 2025), Raymond’s price was adjusted downwards by about 64%, from ~₹1,561 to ~₹556. Media coverage from sources like India Today and Economic Times was quick to clarify that this was a technical price adjustment: the sharp fall was “not due to any negative news or fundamentals” but simply because the market stopped factoring in the value of the realty arm. In other words, it isn’t lost value — it’s value unlocked. Raymond Realty itself had strong Q4 results and a huge project pipeline, and it is expected to list separately by Q2 FY26.

Another recent development was the earlier split of Raymond’s lifestyle/apparel business. In mid-2024, Raymond demerged its branded garments division into a separate company (Raymond Lifestyle Ltd), which got listed on the stock exchange. Moneycontrol notes that this was the “first major demerger”, with the realty demerger being the second. The Raymond share price had run up significantly ahead of that listing, so shareholders who held on benefited.

On the corporate side, Raymond Ltd. also saw some board-level changes: in March 2025, director Nawaz Modi Singhania (Chairman Gautam Singhania’s estranged wife) resigned from the board. This was a formality following their announced separation and likely has limited business impact. The board emphasized continuity and governance in their statement.

Financially, during Q4FY25 and FY25 results (reported in May 2025), the management highlighted robust growth in real estate sales and continuing momentum in engineering products. They reiterated confidence in aerospace components as a growth area. Analysts at ICICI Direct noted strong booking values and additional joint development agreements signed, which will help future sales. Such updates have generally been received positively by the market, once the demerger adjustment was understood.

Overall, the recent news has been dominated by value-unlocking demergers and strong real estate performance. For the investor, it means the share price movement was largely mechanical. Post-adjustment, Raymond share now reflects only the pure textiles and engineering businesses. Meanwhile, shareholders hold equity in the new Realty and Lifestyle entities. This separation is meant to make each company’s prospects clearer. Major financial news outlets (e.g., Moneycontrol) have emphasized that “the stock price adjusted accordingly” and encouraged investors to focus on the combined value of Raymond plus its demerged subsidiaries.

Risks and Challenges

Despite the positives, several risks should be considered before investing in Raymond share:

• Execution Risk in Real Estate: Although the realty arm has a large project pipeline (~₹40,000 Cr GDV), real estate development is capital-intensive and subject to market cycles. Delays or cost overruns in the JDAs (joint development agreements) could hurt profitability. If property markets cool, that could impact Raymond Realty’s future revenue and indirectly affect shareholder sentiment.
• Structural Changes Complexity: The demergers add complexity. Investors now have to track multiple listed entities (Raymond Ltd, Raymond Realty, Raymond Lifestyle). It can be unclear how to value each piece and ensure no value is left behind. Misunderstanding these corporate actions could lead to mistaken trading decisions.
• Lack of Short-Term Liquidity: Post-demerger, Raymond Ltd’s free-float market cap has shrunk (around ₹3,670 Cr). This smaller scale and possibly lower trading volumes can make the stock more volatile. Price movements might swing more sharply on smaller news or flows.
• Interest Rate and Economic Risks: As a textiles and real estate company, Raymond is sensitive to economic cycles. High interest rates or a slowdown in consumer spending could reduce demand for branded apparel and homes, affecting revenues. In tough times, discretionary spending on suits or condos could decline.
• High Valuation Stretch (Historic): Before the drop, Raymond was trading at very high multiples (it was 84% away from its 52-week high). If the underlying businesses hadn’t been demerged, such a valuation would have been hard to justify by fundamentals alone. In other words, there is the risk that investors were too optimistic pre-crash. Going forward, if the remaining business doesn’t grow fast, even current low multiples might appear high.
• Management and Governance: While the Singhania family has led Raymond for generations, the management changes (like the director resignation mentioned above) and any future leadership shifts could unsettle investors. Also, any controversy around insiders or governance (though none is apparent now) would be a negative.

In balance, most analysts agree that the big negative risk (price crash) is behind us, since it was due to the known demerger and not a surprise loss. As one report put it, today’s Raymond “just got lighter” by carving off real estate. Yet the core businesses still face normal industry risks (competition, raw material prices, global demand for textiles). Prospective investors should weigh whether the current stock price fairly compensates for these uncertainties. If one believes in the long-term thesis (leading brands, asset-light model via JDA, steady cash flows), the risks may appear manageable at this level.

Expert Views and Insights

Experts and analysts are watching Raymond closely. According to Moneycontrol, the recent 64% fall was “not a crash” but a “hidden goldmine” of sorts because it unlocked value for shareholders. Moneycontrol’s analysis highlights that with the demergers, Raymond shareholders effectively “unlock” the value of the lifestyle and real estate arms (they now own shares in separate companies). In other words, it argues that no real value was lost, just separated.

The Economic Times echoes this positive spin. It notes that “Raymond share price plunged 66%” only because it went ex-date for the Realty demerger, calling it a “notional price adjustment”. ET points out that Raymond Realty enters the next phase “with strong financials, key project traction, and a Rs 40,000 crore pipeline” – which is a vote of confidence in the underlying business prospects. They also remind readers that the lifestyle business demerger in 2024 similarly unlocked value, and that Raymond Realty will list by Q2 FY26.

According to analysts on major platforms, the demergers are part of a broader strategy to streamline Raymond into focused, high-growth verticals. This view (seen on CapitalMarket news) suggests this corporate action is deliberate “to unlock value by restructuring its operations into focused verticals”. In this narrative, each new company (Lifestyle, Realty, Engineering, Textiles) can be better valued on its own merits. For example, Raymond Lifestyle (the spun-off apparel firm) was tipped to have a 20–30% upside by brokerage reports after listing, thanks to its strong brand.

On the financials, broker research (like ICICI Direct) has been upbeat about the real estate arm’s growth. They highlight that realty revenues and bookings are climbing sharply. Similarly, engineering businesses (especially aerospace components) are expected to grow as the aviation sector recovers. These expert calls add optimism for medium-term performance, conditional on execution.

To summarize expert sentiment: Raymond’s story is positive. Analysts emphasize that the recent share price action was technical, not fundamental, and stress that the combined value of Raymond’s parts is intact. Both Moneycontrol and Economic Times essentially say “don’t panic – this is a structural adjustment and often a buying opportunity for patient investors”. For example, one analysis even headlines that the dip is “not a crash” but “value unlocked”. Of course, they advise watching the upcoming listing of Raymond Realty and quarterly results of each vertical. But the consensus from these platforms is that long-term prospects remain sound if the company meets its growth plans.

Conclusion

In conclusion, Raymond’s share looks intriguing for long-term investors. The company sits on strong brands, leading market positions, and is now financially robust (net-cash, low debt). The recent stock plunge was largely a mechanical outcome of corporate restructuring, not a sign of broken fundamentals. In fact, analysts from Moneycontrol and Economic Times alike stress that the crisis is one of understanding the demerger: the stock is essentially “lighter” by the realty business but shareholders have received corresponding value.

Key takeaways: Raymond’s core business has a durable moat (worsted fabrics, branded apparel). It reported strong quarter-on-quarter growth for FY25. Its new real estate and lifestyle ventures each have attractive pipelines. At current prices, the valuations are unusually low (P/E ~0.5x), which suggests the market may have overreacted. Yes, there are risks (execution in real estate, cyclical demand, and the challenges of new listings), but the long-term outlook for Raymond seems positive if those are managed.

For general investors, the question is: do you believe in Raymond’s brands and value-unlocking strategy over the next 3–5 years? If so, the current share price could offer a compelling entry point. The consensus among experts is cautiously optimistic: they recommend focusing on the big picture (steady business growth, eventual listing of Raymond Realty, and brand strength) rather than the one-off drop. In other words, Ray­mond share may well recover as the market digests the new structure and the true combined value of all entities shines through.

Key Takeaways: Raymond is a legacy textile leader now refocused into pure-play businesses. Recent drops were due to demergers – essentially unlocking value – not bankrupt fundamentals. The company’s balance sheet is strong, and its brands are market leaders. At current low valuations, patient investors could benefit if Raymond delivers on its growth projects. Overall, the outlook is cautiously positive for shareholders who take a long-term view.

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