Defence stock Raymond surged more than 12% to hit its fresh 52-week high of ₹869.05 in intraday deals on Tuesday, 8 September, ahead of its board meeting outcome.
opened at ₹772.30 against its previous close of ₹772.80 and jumped 12.45% to its one-year high of ₹869.05, rising for the second consecutive session.
The stock is on a bullish uptrend as the company’s board is to announce its decision on raising funds.
According to experts, the strong bullish sentiment for the stock is driven by re-rating buzz as well as the company’s healthy earnings.
Raymond’s Q1FY27 total income stood at ₹628 crore, up 13% year-on-year (YoY). EBITDA rose 14% YoY to ₹100 crore with margin expanding by 20 basis points YoY to 15.9%.
Raymond eyes fundraise
In an exchange filing on 3 September, said a board meeting would be held on Tuesday, 8 September, to consider and evaluate a proposal for raising of funds through the issuance of equity shares and/or convertible securities and/or warrants and/or any other eligible securities, on a rights/preferential basis or any other permissible mode/and/or combination thereof as may be considered appropriate, subject to such regulatory/ statutory approvals as may be required.
Raymond share price trend
The stock has surged 123% over the last six months. On a monthly basis, it has jumped 35% so far in September, following a 9% rise in August.
What should investors do?
Experts underscore that Raymond’s demerger separated the lifestyle and realty businesses into independent listed entities, making its valuation more dependent on its engineering operations, investments and other assets.
According to Pravesh Gour , an analyst at Swastika Investmart, the key positive about the stock is that the restructuring could unlock value and provide greater business focus, while the engineering segment offers potential for improving revenue and profitability as order execution strengthens.
However, Gour observed that the company’s recent earnings profile remains relatively modest, and investors need to closely monitor operating margins, order inflows, cash generation and return ratios.
Gour added that the company also needs to demonstrate sustained profitability improvement before the stock can justify a significant valuation re-rating.
Therefore, Raymond appears to be more of a value-unlocking and turnaround opportunity than a pure high-growth story, said Gour.
“My fundamental view is cautiously positive for long-term investors, provided the company delivers consistent improvement in its engineering business and cash flows. Investors should also evaluate the stock using a sum-of-the-parts approach, considering its investments and residual assets, rather than relying solely on historical Raymond brand value,” said Gour.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, Raymond is currently showing signs of overextension on the weekly chart, with RSI near 78, indicating that momentum has reached an elevated level.
Patel said that while the broader trend remains strong, such readings suggest that the stock may be vulnerable to profit-booking or a period of consolidation.
“The cloud resistance near ₹900 is an important hurdle, and a sustained move above this level would be required to signal further upside. On the downside, ₹780 is the key support to watch. Existing investors should consider booking profits at elevated levels, while fresh longs should be avoided until the stock offers a better risk-reward opportunity. A decisive break below ₹780 would weaken the current structure and may lead to further correction,” said Patel.
Vipin Kumar, AVP-Research at Globe Capital Market, underscored that Raymond witnessed a sharp surge in prices following a bullish breakout with a significant rise in volume from the upper band of the past three-year-long congestion range.
Kumar added that the breakout has pushed the stock into uncharted territory.
“Considering the current chart structure, we reiterate our bullish view on Raymond and expect it to move towards its initial targets of ₹950, followed by ₹1,100 in the medium term. Any dip down to the ₹800 levels should be taken as a fresh buying opportunity,” said Kumar.
Read all market-related news
Read more stories by
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.