Will Raymond seize the opportunity? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Will Raymond seize the opportunity?

May 13, 2000

A fortnight back, Raymond finally succeeded in selling its 2.24 m tonne cement plant at a very decent price of Rs 7.85 bn. The management had hinted they could use a part of the money for acquisitions and some part of the money could be used for the repayment of debt. The point to consider is: does Raymond have any other option other than the repayment of debt? The company has an approximate total debt of Rs 9.50 bn and its interest burden in the current year was Rs 968 m.

The steel business, which contributes 20% of the FY2000 turnover, is still in the doldrums. The company’s product silicon steel is largely used by the electrical industry. With the power reforms not taking off as fast as they were expected to, the demand for electrical equipment has been lukewarm at best.

Its core business, worsted suiting volumes are expected to slow down in the future due to increased competition and a shift in the consumption pattern in favour of readymade garments. (Raymond itself has introduced the ‘Parx’ range of casual wear apart from the Park Avenue range of shirting). Volumes are not expected to grow beyond 28 million metres over the next two years (from the present level of 24 million metres).

The apprehension that the management could diversify into unrelated areas again still remains. Raymond’s venturing into chopper services is cited as an example.

This is the best chance that the company has to get out of the hole it has got itself into. Will the management seize the opportunity?

Equitymaster requests your view! Post a comment on "Will Raymond seize the opportunity?". Click here!


More Views on News

RAYMOND 2020-21 Annual Report Analysis (Annual Result Update)

Oct 20, 2021 | Updated on Oct 20, 2021

Here's an analysis of the annual report of RAYMOND for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of RAYMOND. Also includes updates on the valuation of RAYMOND.

Raymond Shares Gain 5% on this Unexpected Move (Views On News)

Sep 28, 2021

Raymond to rejig business to create value for shareholders.

RAYMOND 2019-20 Annual Report Analysis (Annual Result Update)

Dec 10, 2020 | Updated on Dec 10, 2020

Here's an analysis of the annual report of RAYMOND for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of RAYMOND. Also includes updates on the valuation of RAYMOND.

7 Indian Companies that Swear by Buffett's No-Split Rule (Views On News)

Sep 28, 2021

Just like Warren Buffett's Berkshire Hathaway, these Indian companies have not split their shares.

Top Performing Penny Stocks of 2021 (Views On News)

Aug 28, 2021

Several penny stocks have delivered multi-fold returns in a short span of time. Here are a few of them.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 3, 2021 (Close)


  • Track your investment in RAYMOND with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks