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

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

Updated: 02 Dec 2022, 04:20 PM IST
TL;DR.
On the valuation front, as per Trendlyne, Raymond's price-to-earning ratio (PE) is 16.89 which is lower than its sector PE ratio of 55.16.
Raymond's consolidated net profit for the quarter stood at  <span class='webrupee'>₹</span>161.95 crore, up 188 percent YoY from  <span class='webrupee'>₹</span>56.15 crore in the same quarter last year.

Raymond's 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.

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.

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Raymond stock in last one 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.

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Raymond tech chart

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

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First Published: 02 Dec 2022, 12:55 PM IST