Shares of this multibagger stock under the ‘small-cap’ category rose around 11 percent in Tuesday’s trading session after multiple Brokers initiated coverage and gave a ‘Buy’ rating to the company’s stock.
With a market capitalization of Rs 14,546.36 crores, the stocks of Raymond Limited started their trading session at Rs 2,090 and currently trade at Rs 2,185.
The company’s scrip witnessed an intra-day high, also marked as the new 52-week high figure, of Rs 2,240 indicating a gain of around 10.50 percent compared to the previous close of Rs 1,977.75 apiece.
One of the probable reasons for the company’s stock prices to surge is with regard to two well-known Brokerages namely “Jefferies”, a Global Brokerage, and, Motilal Oswal Securities, a Broking firm based in India, initiated coverage on Raymond Limited.
The set of Brokers gave a ‘Buy’ tag to the company’s stock with a target price of Rs 2,600 exhibiting an upside of around 19 percent as compared to the stock prices prevailing in the markets. Comparing the previous closing levels, the analysts gave a recommendation
Pre-open, the target price provided exhibited an upside of around 31 percent, and, post the effect of the coverage initiated, the company’s stock gained 11 percent in Tuesday’s trading session with around 20 percent upside potential left in the stock.
Despite the concerns pertaining to the company’s capital structure, the Brokerages have a positive outlook for the company contributed by strengthening the senior leadership teams, comprehensive restructuring of the group’s operating structure, improving earnings trajectory, etc.
Keeping a purview of one year, the company’s stock has been successful in generating multibagger returns of 122 percent, i.e., a 1 lakh investment into the stock would have converted to Rs 2.22 Lakhs within a period of one year if someone had invested in the stock.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 49.11 percent stake, and the Foreign Institutional Investors (FIIs) hold a 17.76 percent stake in the company.
Raymond Limited is involved in the business of textile and apparel products operating in various divisions namely Garments, Shirting, Real estate development, and many more. Some of the brands in its profile include Park Avenue, Parx, etc.
Written by Amit Madnani
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