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Raymond Ltd. Stock Analysis

Small Cap
Evaluated by 1879 users | BSE: 500330 | NSE: RAYMOND |
Textile - Weaving
Raymond was incorporated in 1925 and is a leading Indian textile major. The company is part of global conglomerate Raymond Group.Raymond was the first in 1959 to introduce a polywool blend in India to creating the world's finest suiting fabric the Super 240s made from the superfine 11.6 micron...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Raymond Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.56%8.58%5.42%7.93%7.03%6.41%3.78%5.87%7.86%8.13%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,0433,6424,0694,5485,3335,1415,3535,9006,5826,482
Y-o-Y Gr. Rt.-19.7%11.7%11.8%17.3%-3.6%4.1%10.2%11.6%-1.5%
Adjusted EPS (Rs.) 30.2922.825.9220.0616.8316.443.3617.8829.4427.11
Y-o-Y Gr. Rt.--24.7%-74.1%238.9%-16.1%-2.3%-79.6%432.1%64.7%-7.9%
Book Value per Share (Rs.) 198.79221.52224.45238.86251.11272.45272.58295.21318.31367.02
Adjusted Net Profit 18614036.312310310120.6110181175
Net Op. Cash Flow (Rs. Cr.) 75.6230326192380317348395251373
Debt to Cash Flow from Ops 21.297.585.389.914.956.56.155.969.846.85
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Raymond Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.8%4%6.6%-1.5%
Adjusted EPS -1.2%10%100.6%-7.9%
Book Value per Share 7.17.910.415.3
Share Price -1.9% -5% -31% -56.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.5210.852.658.656.876.281.236.39.68.1
Operating Profit Margin (%) 13.5812.449.1110.948.017.275.697.218.98.04
Net Profit Margin (%) 5.753.50.482.431.991.790.952.062.970.45
Debt to Equity 1.321.281.271.31.221.231.281.31.261.08
Working Capital Days 177177178178169186187191199226
Cash Conversion Cycle 819091908499102908499
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 48.27%
Institutions 10.75%
Non-Institutions 40.99%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Raymond Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Raymond Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Raymond Ltd.'s performance infers:

Raymond Ltd. earnings have grown by 10%, whereas share price has depreciated -5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Raymond Ltd. share prices over the last 10 years. Here is what we found out:

Raymond Ltd. share price has depreciated -0.6% annually over the past ten years.

Raymond was incorporated in 1925 and is a leading Indian textile major. The company is part of global conglomerate Raymond Group.

Raymond was the first in 1959 to introduce a polywool blend in India to creating the world's finest suiting fabric the Super 240s made from the superfine 11.6 micron wool. It produces wool-blended and premium polyester viscose worsted suiting. Besides, textile company has also diversified in engineering and aviation.

Raymond is largest manufacturer of steel

Raymond was incorporated in 1925 and is a leading Indian textile major. The company is part of global conglomerate Raymond Group.

Raymond was the first in 1959 to introduce a polywool blend in India to creating the world's finest suiting fabric the Super 240s made from the superfine 11.6 micron wool. It produces wool-blended and premium polyester viscose worsted suiting. Besides, textile company has also diversified in engineering and aviation.

Raymond is largest manufacturer of steel files in the world accounting 30% of market share.

Raymond’s textile plant is located in Thane, Vapi and Chhindwara. These plants have received various certifications such as ISO 9001 for quality management systems and ISO 14001 Environment Control Systems.

In 2011 the company launched 600th Raymond Shop outlet. In 2013  Raymond Premium Apparel crossed Rs. 1 bn mark. and the company marked the Pan-India launch of ‘Makers’ brand.

Businesses

Textile- Under this it manufactures worsted fabrics, wool and wool blended fabrics. It has production capacity of 33 million meters per annum and has a product range of nearly 20000 design and colours. The company exports to over 55 countries that include USA, Canada, Europe, Japan and the Middle East. It retails the products through 30,000 stores in over 400 towns across India.

Engineering- It has three engineering divisions namely JK Files & Tools, JK Talabot and Ring Plus Aqua. It manufactures steel files, tools, Starter Ring Gears, Flexplate Flywheel Assembly, Profile Sheet Formed Metal Pulleys and Integral Shaft Water Pump Bearings. The export performance has been recognized continually year on year by the Engineering Export Promotion Council of India and the Engineering Files Panel of India.

Aviation- The company was one of the first corporate houses to launch Air Charter Services in India in 1996. It owns 1 Ecureuil AS 355N Twin Engine Helicopter, 2 Bell 206 L3 Long Ranger Helicopters and 1 Challenger CL-604 Business Jet Aircraft.

Awards

The Businessworld Most Respected Company Award 2011 in the Apparel & Textile category.

Raymond has been ranked 20th in 'The Brand Trust Report, India Study, 2011'.

Images Fashion Awards 2009 - Most Admired Textile Brand of the Year

The company received Most Admired Suiting Brand of the Year at Lyrca Images Fashion Awards 2008.

Raymond was honoured with 'All India Export Award' for being the Star Performer of 2006 in the hand tools Category from Engineering Export Promotion Council (EEPC) of India.

It was awarded ‘Outstanding Exporter Award' in the engineering category at DHL & CNBC TV18 International Trade Awards 2006-07.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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