Shares of smallcap company jumped up to 2 percent in Thursday’s trading session after reporting an increase in net profits by 91 percent YoY. The shares have delivered around 30 percent returns to its shareholders in one year.
With a market capitalization of Rs. 11,868 crores, the shares of Raymond Ltd started Thursday’s trading on a higher note at Rs. 1,780 compared to its previous close of Rs. 1,775.35. During the trading session, the shares hit a high of Rs. 1,825, gaining around 2 percent and are currently trading at Rs. 1,777 apiece.
Such a bullish movement in the share price was observed after the company announced their October to December results. Looking at the consolidated financial statements published by the company, the revenue increased by 6 percent from Rs. 2,253.40 crores during the September quarter to Rs. 2,386.18 crores in the December quarter. In addition, the net profits increased by 15 percent from Rs. 161 crores to Rs. 185.39 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 9 percent from Rs. 2,168 crores during Q3FY23 to Rs. 2,253.40 crores in Q3FY24. On the other hand, the net profits magnified by 92 percent from Rs. 97 crores to Rs. 185.39 crores during the same timeframe.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 16.53 percent during FY 21-22 to 23.24 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 12.70 percent to 21.11 percent during the same timeframe. Furthermore, the net profit margin increased from 5.96 percent during FY21-22 to 7.44 percent during FY22-23.
According to the BSE data, Ace Investor Mr Mukul Agrwal, entering the stock in March 2022, currently holds 1 crore equity shares equivalent to a 1.50 percent stake in this company. The current holding value of his investment amounts to Rs. 179.5 crores.
The Company has a retail network of 1,638 stores, including 1,589 stores in about 600 towns and cities in India and 49 overseas stores in nine countries. It is one of the largest vertically and horizontally integrated manufacturers of worsted suiting fabric in the world.
Headquartered in Mumbai, Raymond Ltd was incorporated in 1925. The company is a diversified group with interests in the Textile and Apparel sectors as well as a presence across diverse segments such as Real Estate, FMCG, and Engineering in national and international markets in more than 55 Countries including the USA, Europe, Japan and Middle East.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
