Holding Raymond? Know complete management insight of the stock that hit its upper circuit today!

The company has filed DRHP for an IPO of engineering business to raise around Rs 800 crore.   

Raymond ‘the complete man’ has been a stock, without which, anyone’s portfolio would have been incomplete in the last couple of years. The stock jumped over 500 per cent from its April 2020 low to the high of June 2022. However, after logging an all-time high of Rs 1,236.13 in June, the stock witnessed a swift correction of nearly 38 per cent in a span of just 15 trading sessions.   

After the swift correction, the stock took support around its important moving average i.e., 100-DMA, and witnessed a rebound from this significant support. Interestingly, the stock, on Tuesday, got locked at an upper circuit limit of 5 per cent at Rs 906.90 while its volume for the day is the highest in the last four trading sessions.   

Recently, IDBI Capital interacted with management, and here are some key takeaways from the management interaction.   

Ethnix:  

The company targets to capture market share in the ethnic segment (under ‘Ethnix’ brand) by focussing on aggressive retail expansion, price points, and quality differentiation.   

Realty:  

In realty business, the first three towers of Tenx project were delivered two years ahead of RERA timelines. On owned property, the company has received an overwhelming response from customers and the cash flows generated are to be utilised in new projects. Interestingly, the company is expanding its real estate business beyond Thane in the MMR region through an asset-light JDA model.   

Lifestyle business:  

For lifestyle business, the company expects branded textiles growth to be largely driven by strong growth in shirting. Branded apparel has a strong growth potential through new offerings in the core portfolio and high growth in the ethnic category.   

Engineering vertical:   

The engineering vertical is expected to grow by consolidating its leadership position in the files market and by expanding in cutting tools, ring gears & flexplates. The company has filed DRHP for an IPO of engineering business to raise around Rs 800 crore.   

The stock is up by more than 50 per cent on a YTD basis as against a drop of more than 10 per cent on Nifty 500 index.