Raymond shares hit all-time high, up 159% this year; time to book profit?

Shares of Raymond surged 19.25 percent to hit their all-time high of ₹1,629.95 in intraday trade on BSE on December 2 in a weak market.

The stock finally closed 17.82 percent higher at ₹1,610.30.

There is no immediate fundamental trigger for the stock which just spurted in trade on December 2. In the previous session, the stock ended with a nominal gain of 0.11 percent.

From ₹621.25 level on December 31, 2021, to ₹1,610.30 on December 2, the stock has jumped 159 percent this year so far.

As per a BSE filing, the company's September quarter consolidated revenue from operations jumped nearly 40 percent year-on-year (YoY) to ₹2,168.24 crore from ₹1,551.32 crore in the same quarter last year.

Consolidated net profit for the quarter stood at ₹161.95 crore, up 188 percent YoY from ₹56.15 crore in the same quarter last year.

On the valuation front, as per Trendlyne, the stock's price-to-earnings ratio (PE) is 16.89 which is lower than its sector PE ratio of 55.16.

Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers pointed out that at the current juncture, the stock is trading at an all-time high. Still, volume is not rising along with the rising price which is an anomaly according to volume spread analysis.

"On the monthly scale, MACD and DMI are both overstretched over a long period of time. So, one can book partial profits between ₹1,550-1,600," said Patel.

Disclaimer: The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.