Raymond – Now a ‘complete man’ - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

Raymond – Now a ‘complete man’

Aug 26, 2000

Raymond Limited is a ‘complete man’ now. It has divested its cement division and the sale of steel division is on the way. This leaves just textiles and garments for the company. The company would be focusing in this area in coming years. Under the restructuring plan, Raymond Limited has almost finalised the sale of steel division to Thyssen, the German trading major, for Rs 2,760 m (US $60) (according to unconfirmed reports). The deal is expected to get through by early next month. Raymond will retain 26% stake in the joint venture for which it is expected to pay US $5 million (Rs 230 m). Raymond’s steel division manufactures cold-rolled steel (strips and silicon), and contributes to around 28% of turnover.

Sales mix
Division Turnover % of total
sales
Fabrics 7,029 45.9%
Garments 141 0.9%
Shirtings 31 0.2%
CR Steel strips 2,315 15.1%
CR Silicon Steel 1,916 12.5%

Earlier last year, the company sold its cement division to Lafarge India for a consideration of Rs 7,850 m. Now, with the sale of its steel division, the company would be receiving Rs 10.6 bn. This will make the company almost debt-free and would bring significant improvement in the operational efficiency of the company.

Nevertheless, it is expected to post a sharp drop in sales for the current year as both the divested divisions contributed to the turnover in FY00. However, the garment business is supposedly one of the fastest growing business in India with the annual revenues of Rs 60 bn in FY99 (Rs 150 bn in FY10) where it commands 13% market share. Strong brands coupled with new ranges being introduced under its ‘Parx’ brand should help the company to post better results. However in the last one year, multinationals like Crocodile and domestic majors like Indian Rayon have been aggressively focusing on branded apparel, casual wear and the formal wear segments. However, good distribution network and aggressive expansion spree will enable Raymond to withstand competition.

The stock is currently trading at Rs 93 at a P/E multiple of 21 on FY00 earnings

Equitymaster requests your view! Post a comment on "Raymond – Now a ‘complete man’". 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'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

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

RAYMOND SHARE PRICE


Dec 7, 2021 02:38 PM

TRACK RAYMOND

  • 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

COMPARE RAYMOND WITH

MARKET STATS