Shares of Raymond rose for the eighth consecutive trading session on Tuesday. The stock opened at ₹1,560 apiece and rose to hit an intraday high of ₹1,606.95, up 3.4% against the previous closing price of ₹1,552.
On Monday, the stock surged 9% in intraday trade after the company appointed K Narasimha Murthy as an Independent Director for five years starting April 21. “He is associated with the development of Cost & Management Information Systems for more than 175 companies covering more than 50 industries,” said the company.
"In addition, he is closely associated with turning around many large corporations, focusing on systems improvement with a cost reduction approach," the company said through an exchange filing.
The company's shares have been on a bull run since March 29, gaining almost 43%, climbing from ₹1,109 apiece to the current market price. During the same period, the market valuation of the company increased by ₹3,148 crore.
In the last one-year period, the stock has generated a fabulous return of 74.50%, as against a 3.37% rise in the benchmark Nifty 50 index. The stock witnessed a massive surge of 66.39% between September and December last year, reaching a lifetime high of ₹1,644 per share. With the current market price, the stock is only 3.52% away from its record high.
At the time of writing, the stock had a price-to-earnings (P/E) multiple of 17.7x, much lower than its sector PE of 60.7x. The EPS was ₹89.81, while the price-to-book value ratio stood at 4.24x.
Raymond is a small-cap stock with a market capitalization of over Rs. 10,521 crore. The company is a diversified group with majority business interests in the Textile and Apparel sectors and a presence across varying segments such as Consumer Care, Realty and Engineering in national and international markets.
The flagship business of The Raymond Group is a category leader in the branded suiting and shirting space and has a strong presence in the ready-to-wear apparel space.
For the December quarter, the company reported a decline of 4.42% in its consolidated net profit at ₹96.60 crore, mainly on account of a one-time tax hit. The company had posted a net profit of ₹101.07 crore during the October-December period of the previous fiscal.
Raymond has exercised the option of a lower corporate tax rate, which has resulted in a one-time net impact of ₹73.5 crore in the profit and loss account.
The consolidated revenue from operations during the same quarter rose 17.61% to ₹2,168 crore as against ₹1,843 crore in the year-ago period.
The company reported an operating profit of ₹314 crore in Q3 FY23, an increase of 14.18% when compared to ₹275 crore in the same quarter of the last fiscal year. EBITDA margin came in at 14%, down by 100 basis points (bps) from 15% in Q3 FY22.
04 analysts polled by MintGenie on an average have a 'strong buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.