Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Raymond – Now a ‘complete man’ - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 26, 2000

    Raymond – Now a ‘complete man’

    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
    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

    Discover the Secrets of Hidden Smallcaps From These AGMs (The 5 Minute Wrapup)

    May 26, 2017

    Don't be surprised to come across some Super Investors there!

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (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


    Detailed Financial Information With Charts