Raymond
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Raymond's management has expressed a strong outlook, driven by robust demand in aerospace and precision auto components, alongside a strategic shift towards higher-value manufacturing. The company's 'Parivartan' initiative is enhancing revenue expectations, despite facing minor headwinds from logistics and R&D costs. Vista's financial outlook reflects stable revenue growth and improving margins, supported by a long-term order book and the commissioning of a new facility. However, the competitive landscape remains challenging, with potential supply chain disruptions and rising raw material costs posing risks. The textiles industry is expanding, providing a favorable backdrop, yet macroeconomic factors such as inflation and liquidity constraints could temper growth. Over the next 12-24 months, key opportunities include leveraging government initiatives and diversifying customer bases, while watchpoints include geopolitical tensions and cost pressures from ongoing capital expenditures
Why We Like This Stock
- Strong demand in aerospace and precision auto components is driving revenue growth
- The 'Parivartan' initiative is expected to enhance operational efficiencies and margins
- Long-term agreements with global Tier-1 players provide visibility and stability
Things To Watch Out For
- Rising raw material costs and logistics challenges may impact profitability
- Intense competition in the textiles industry could pressure pricing and margins
- Macroeconomic factors, including inflation and liquidity constraints, pose risks to growth
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 973 | 1,947 | 2,212 | 2,374 | 2,525 |
| Profit Before Tax (Cr.) | 27 | 11 | 59 | 62 | 66 |
| PBT Margin | 2.8% | 0.6% | 2.7% | 2.6% | 2.6% |
| Net Profit (Cr.) | 1,612 | 7,547 | 5,347 | 47 | 50 |
| Earnings Per Share | 241.5 | 1133.4 | 800.4 | 7.0 | 7.4 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Raymond Limited engages in the engineering businesses in India. It operates through Precision technology and auto component; Aerospace and defence; and Others segments. The company also engages non-scheduled airline operations. In addition, it manufactures and distributes steel files, cutting tools, hand tools, power tool accessories, and machines; and precision components, such as ring gears, flexplates, and water pump bearings, as well as machined components and sensor rings. The company serves automotive, industrial systems, aerospace, and defense industries; and non-automotive industries, including construction, marine, lawn equipment, and power generation. Raymond Limited was incorporated in 1925 and is based in Mumbai, India.