Raymond Ltd - quarterly sales growth 98%
Company name - Raymond Ltd
Last closing price(NSE:RAYMOND) - ₹1998.8 (as on 06-Sep-2024)
Executive Summary
Raymond Ltd incorporated in 1925, is a diversified businesses group with interests in real-estate and engineering. They recently demerged their textile and apparels business to Raymond Lifestyle Ltd which has been listed.
Strong quarterly sales growth reported of 98% in the latest quarter Q1-FY 2025.
The price-to-book value of the peers is between 5 to 8, whereas of Raymond Ltd it is currently at 2.87. This shows potential for price growth.
Stock price chart
Detailed analysis
About the company
Raymond Ltd incorporated in 1925, is a diversified businesses group with interests in real-estate and engineering. They recently demerged their textile and apparels business to Raymond Lifestyle Ltd which has been listed.
The total revenue split between real-estate and engineering business is ~54%:46%, and EBITDA split is ~60%:40% respectively. (as of Q1 FY25)
Financial analysis
Overview
The company has a very strong ROCE(return on capital employed) of 30.9%.
Strong quarterly sales growth of 98.1% in the latest quarter Q1-FY 2025.
Price to book value is low at 2.86.
Quarterly results
Growth in key metrics compared to the last year’s same quarter in the latest quarter Q1 - 2025 -
Strong quarterly sales growth reported of 98%.
Operating profit growth of 109%.
Note - The company reported significant sales decline in Q1 and Q4 in the last financial year (FY 2024). They have reported a turnaround in Q1 - FY 2025, further results to be monitored.
Annual results
Growth in key metrics in the last financial year 2024 compared to the last financial year
Net profit increased by 305%. (Note - 74% contribution from other income)
Sales increased by 9.79%.
Peer comparison
(Note - the comparison shared above is with other real-estate business peers, but the group also has an Engineering business division as another revenue source and the numbers indicated are consolidated.)
The price-to-book value of the peers is between 5 to 8, whereas of Raymond Ltd it is currently at 2.87. This shows potential for price growth.
The ROCE is highest among the peers at 30.93%.
The company’s sales from real-estate is ~ 3521Cr(considering 54% revenue share). The real-estate peers with similar sales have 2x to 4x market cap.
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Disclaimer
This is not a stock recommendation. It’s an analysis of the stock basis the data available today, and the viewpoint can change in future.
Credits : Financial data source - screener.in