Mukul Agrawal’s portfolio company: Board approves demerger to enter aerospace, defence, and EVs; PAT surges by over 200 per cent in FY24!

The company's shares have delivered a multibagger return of around 580 per cent in the past three years.

Raymond Limited, incorporated in 1925, is a diversified group with interests in the textile and apparel sectors. It also has a presence across diverse segments such as real estate, FMCG, and engineering in national and international markets. The company has made a significant announcement regarding the demerger of its engineering business.

As per the press release, the boards of different parts of Raymond's business have agreed to split off their engineering division. This move will help both Raymond and the recently acquired Maini Precision Products to enter some new, promising industries.

Explaining the rationale behind the composite agreement, Raymond said the move will "consolidate the engineering business of Raymond and MPPL to build scale and achieve profitable growth. This includes venturing into sunrise sectors such as aerospace, defence, and electric vehicle components, as well as segregating the aerospace and defence business."

Post consolidation, Raymond aims to set up two units, one of which will focus on aerospace and defence, while the other will cater to the auto components with EV and engineering consumables sector.

Furthermore, the company posted brilliant Quarterly Results as well as the FY24 results. The revenue of the company for FY24 stood at Rs 9020 crore which grew by 9.80 per cent YoY. The operating profit of the company stood at Rs 1309 crore with an operating profit margin of 15 per cent, while the PAT of the company stood at Rs 1643 crore, representing an impressive growth of 206 per cent YoY.

The shares of this Mid-Cap company Raymond have also delivered multibagger returns of around 580 per cent in the past three years. On Friday the stocks closed the day at Rs 2227.45 per share on the BSE.

Moreover, ace investor Mukul Agrawal holds a 1.50 per cent stake in the company, while FIIs and DIIs hold 14.50 per cent and 8.78 per cent stakes, respectively.

Investor must keep this stock on their radar.