Raymond Ltd's stock surged 18.3% to a record high of Rs 3480.35 today, up from the previous close of Rs 2941.90 on the BSE. This rise boosted the company's market capitalization to Rs 22,593 crore.
Raymond shares are currently trading above all key moving averages: the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages. The stock hit a record high following the board’s approval of the demerger of its real estate business, Raymond Realty. The shares opened higher at Rs 3035.95 and a total of 2.03 lakh shares were traded, resulting in a turnover of Rs 65.13 crore.
Low Volatility and Strong Technicals
Raymond has a one-year beta of 0.8, indicating low volatility. Its relative strength index (RSI) is 68.9, showing that the stock is neither overbought nor oversold. Over the past year, Raymond shares have gained 96.42%, with a 97% rise in 2024 alone.
Demerger Plan
The demerger aims to consolidate Raymond’s real estate business into a single entity, enhancing growth opportunities and attracting new investors. Under the plan, Raymond will issue 6.65 crore shares of Raymond Realty with a face value of Rs 10 each. Shareholders of Raymond will receive one share of Raymond Realty for each share they hold, with no cash or alternative considerations involved.
Raymond Realty will then debut on both the National Stock Exchange and BSE as a separate company.
Strategic Move and Growth Potential
Raymond described this strategic move as a milestone, noting that its real estate business has achieved significant scale. In FY24, Raymond Realty reported revenues of Rs 1,593 crore, a 43% year-on-year growth, and an EBITDA of Rs 370 crore. The business is now well-positioned to pursue its own growth path.
Raymond Realty owns 100 acres of land in Thane, with 11.4 million sq ft of RERA-approved carpet area, of which about 40 acres is currently under development. The company has five ongoing projects on this land valued at Rs 9,000 crore, with additional potential to generate over Rs 16,000 crore. This brings the total potential revenue from this land bank to over Rs 25,000 crore.
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