Shares of this small cap textile company gained 4.08 percent after the company announced acquisition of 59.25 percent stake in an engineering company for Rs. 682 crores. The company has a market capitalization of Rs. 12,080 crores.
At 02:03, 3rd November shares of Raymond Ltd were trading at Rs. 1,887.30 per share, up by 4.08 percent from previous closing price of Rs. 1,813.40 per share. The stock has delivered 49.9 percent returns in the last 1 year.
Such bullish stock price movement were observed after the company through regulatory filing on Bombay stock exchange (BSE) announced acquisition of 59.25 percent stake in Maini Precision Products Limited (MPPL) for Rs. 682 crores, This acquisition strategically enhances Raymond’s established engineering business by adding a complementary enterprise that operates in the emerging sectors of Aerospace, Electric Vehicles (EV), and Defense.
The acquisition was funded by a mix of debt and internal accruals and is expected to be completed during the current fiscal year. Through this acquisition, Raymond’s engineering division will transform into a major supplier of engineering components for the automotive, electric vehicle (EV), aerospace, and defence industries, operating on a large scale.
Having a glance through financials of the company, revenue increased by 2.51 percent to Rs. 1,771.46 crores in Q1FY24 from Rs. 1,728.14 crores in Q1FY23, in the same time period net profit increased by 1,216.77 percent to Rs. 1.065.27 crores from Rs. 80.9 crores.
Looking at the profitability ratios, the company reported return on capital employed (ROCE) of 21.11 percent and return on equity (ROE) of 20.44 percent in the last financial year.
Raymond Limited, established in 1925, is a multifaceted conglomerate engaged in the Textile and Apparel industries. The company also has a significant presence in various sectors, including Real Estate, FMCG, and Engineering, operating both domestically and internationally. Raymond’s reach extends to over 55 countries, encompassing regions like the USA, Europe, Japan, and the Middle East.
Written by: Vinit Israni
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