Today, Raymond (NSE: RAYMOND) shares have surged over 15%, catching the attention of investors and market watchers. Here’s a closer look at what’s driving this impressive rally.
Stock Exchange Approval for Demerger
Raymond recently received a big boost with key approvals for its demerger plan. Both BSE and NSE issued ‘No Objection’ letters, clearing the path for this strategic move. Here’s what the demerger involves:
- Raymond will carve out its Real Estate Business into a separate listed entity.
- Shareholders will benefit by receiving 1 share of Raymond Realty for every 1 share of Raymond Limited they hold.
This move is expected to unlock significant value, especially given the strong performance of Raymond’s Real Estate division, which reported:
- Revenue: ₹1,593 crore (a 43% year-on-year growth)
- EBITDA: ₹370 crore for FY24
Strategic Business Restructuring
Raymond is restructuring its operations into three distinct growth areas:
- Lifestyle Business – Known for its dominance in textiles and apparel.
- Real Estate Business – A growing sector with strong financial backing.
- Engineering Business – Adding to its diversified portfolio.
This clear separation of business lines is expected to streamline operations and improve focus on growth.
Financial Performance Highlights
While the company posted a drop in revenue in Q2 FY25, its overall financials remain promising:
- Revenue for Q2 FY25: ₹11.0 billion (down 51% from the previous quarter)
- Net Income: ₹600.3 million
- Profit Margin: 5.5%
These numbers reflect ongoing adjustments and strategic initiatives, setting the stage for a stronger future performance.
Market Performance
The stock’s performance today reflects investor optimism:
- Raymond shares jumped by around 7.1% in morning trades.
- The stock hit an intraday high of ₹1,528.90 per share.
- The company’s market capitalization now stands at ₹10,035.32 crore.
Future Growth Potential
Raymond’s ambitious plans are also fueling confidence in its long-term prospects:
- Scaling up its real estate business rapidly.
- Cost optimization measures to improve profitability.
- Expanding its wedding wear stores from 34 to a whopping 250 by FY25, aiming to become the second-largest player in the wedding segment.
Why the Surge?
The sharp rise in Raymond’s stock can be attributed to:
- Approval for the demerger, which is expected to unlock value for shareholders.
- Strong financial performance in its real estate division.
- A well-defined growth strategy across all business segments.
The combination of these factors has made NSE: RAYMOND one of the most talked-about stocks today, with investors bullish about its future potential. Keep an eye on this stock as it continues to make waves in the market!
