Synopsis:
Raymond’s share is in focus after Antique Stock Broking has initiated a Buy call on the share with a potential upside of 30 percent, citing various business upticks.
The shares of this textile giant are back in focus after a leading brokerage house, Antique Broking, predicts an upside potential of 30 percent. In this article, we will try to decode the rationale.
With a market capitalisation of Rs 4,676 crore, the shares of Raymond Ltd are currently trading at Rs 702 per share, down by 17 percent from its 52-week high of Rs 847.55 per share. Over the past five years, the stock has delivered an impressive return of 178 percent.
Leading brokerage house, Antique Stock Broking, has assigned a Buy call on the stock with a target price of Rs 903 per share, signalling an upside potential of 30 percent from its Thursday closing price.
The brokerage firm has pointed out that the Raymond Group is undergoing a significant transformation as it works to unlock value across its various businesses. The company successfully demerged and listed its Fabric division in September 2024, followed by its Real Estate business in July 2025.
Additionally, it has ventured into the precision manufacturing sector, concentrating on components for the automotive and aerospace industries.
Currently, Raymond Ltd. is active in three main areas: Automotive Components, Engineering Tools, and Aerospace. To enhance its focus, the company is gearing up to establish two specialised subsidiaries, one dedicated to defence and aerospace, and the other to auto components, electric vehicles (EVs), and engineering consumables.
Raymond is looking to further expand in these promising sectors, particularly in defence and aerospace, which are supported by robust long-term growth drivers. According to Antique, Raymond’s revenue, EBITDA, and profit are projected to grow at impressive rates of 16 percent, 38 percent, and 55 percent CAGR, respectively. The company’s operating margins are also expected to steadily improve, from 12.2 percent in FY26 to 14.9 percent in FY27 and 15.3 percent in FY28.
Financial Highlights
Raymond reported a revenue growth of 100 percent to Rs 1,947 crores in FY25 from Rs 973 crores in FY24. Additionally, its net profit grew by 365 percent to Rs 7,636 crores in FY25 from Rs 1,643 crores in FY24.
However, it is to be noted that around Rs 7,584 crore is derived as net profit from its demerged operations, which is now not a part of the main business, but due to accounting standards, it is reflected in the profit and loss statement.
The stock delivered an ROE and ROCE of 182.49 percent and 0.60 percent, respectively, and is currently trading at a P/E of 0.60x as compared to its industry average of 40.65x.
Raymond Limited is a well-known Indian company that operates in the realms of real estate and engineering. They have a diverse portfolio that includes real estate development, tools and hardware, auto components, and precision parts.
Not only does the company work on various real estate projects, but it also provides non-scheduled airline services. In the engineering sector, they manufacture and sell a range of products such as steel files, drills, cutting tools, hand tools, power tool accessories, and auto parts like ring gears, flex plates, and water pump bearings.
Written by Satyajeet Mukherjee
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