Why Raymond Share Price is Rising

Raymond, a leading player in the textile and apparel industry, has seen a notable increase in its share price over the last five years.

The reasons behind this surge are many and reflect the company's dynamic strategies and promising outlook.

In November 2023, the stock had taken a hit. In just one week, the shares of the company had dipped by over 10%. This was its longest losing streak in three years.

We had written to you about in our article titled - Why Raymond Share Price is Falling

However, the sentiment has now reversed. In the last month, the stock is up more than 30% and the over the last five days, the stock has gone up over 12%.

So, what's causing a rise in the stock price?

Let's find out.

Reappointment of Gautam Singhania as MD

Shares of the company recently rose after the company's shareholders approved the reappointment of Gautam Singhania as Managing Director for five years effective from 1 July 2024, along with his proposed remuneration.

Earlier, proxy advisory firm, IiAS had asked shareholders of Raymond to vote against the reappointment of Mr Singhania on the board of the company.

The firm had called for an independent investigation into the accusations of domestic violence and misappropriation of funds raised by his estranged wife Nawaz Modi by the board of the company.

In November 2023, the stock had fallen due to a separation announcement by the couple.

The divorce proceedings raised concerns among investors, particularly as Nawaz Modi demanded a 75% share in the Singhania family assets as part of the settlement.

Keeping in mind these issues, IiAS also recommended Raymond shareholders to vote against the proposed remuneration structure for Singhania claiming that it allows him to be paid in excess of regulatory thresholds.

Raymond to Expand Store Network

Shares of the company have also been on an uptrend after the company announced that it would add over 100 stores of its ethnic wear brand 'Ethnix by Raymond'.

Raymond introduced Ethnix as a brand for occasions and celebrations a couple of years back. It now has over 114 stores across the country.

The company wants to tap into the exponentially growing segment of ethnic wear in India with Ethnix. The Ethnix business is already contributing a lot to the revenue of the branded apparel segment of Raymond, along with Parx.

Raymond's Ethnix comes under its branded apparel business, which had sales of Rs 15.9 bn for the financial year 2024. This segment also includes brands as Raymond Ready to Wear, Park Avenue, ColorPlus, and Parx.

How Raymond Share Price has Performed Recently

In the past five days, shares of Raymond have risen by 12%.

The stock is also up 34% in the past month and around 74% in the past six months.

The stock touched its 52-week high of Rs 3,151.95 on 1 July 2024 and a 52-week low of Rs 1,487 on 1 December 2023.

At the current price, the company trades at a price to earnings multiple of 36.9x.

About Raymond

Raymond is a diversified group with interests in textile & apparel.

The company's suits segment holds a 65% market share, establishing itself as the largest branded player in the shirt fabric space. Moreover, its apparel segment ranks among the top three players in the menswear industry.

Expanding its horizons, Raymond has successfully entered the denim market and is a leading manufacturer for international brands.

The company has diversified beyond fashion, into real estate and engineering. In the engineering segment, the brand has emerged as a front runner, particularly in the production of steel files.

For more details about the company, you can have a look at the Raymond Limited fact sheet and quarterly results on our website.

You can also compare the company with its peers.

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