NSEI:RAYMOND

Stock Analysis Report

Executive Summary

Raymond Limited operates as a textile, lifestyle, and branded apparel company in India and internationally.

Rewards

PE ratio (4.1x) is below the Indian market (9.2x)

Revenue is forecast to grow 11.75% per year

Earnings grew by 116.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -12.2% per year for the next 3 years

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record and slightly overvalued.


Similar Companies

Share Price & News

How has Raymond's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAYMOND's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-19.9%

RAYMOND

-2.3%

IN Luxury

-2.9%

IN Market


1 Year Return

-72.9%

RAYMOND

-26.7%

IN Luxury

-29.3%

IN Market

Return vs Industry: RAYMOND underperformed the Indian Luxury industry which returned -26.9% over the past year.

Return vs Market: RAYMOND underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

RAYMONDIndustryMarket
7 Day-19.9%-2.3%-2.9%
30 Day-59.8%-28.6%-26.5%
90 Day-65.4%-25.5%-28.5%
1 Year-72.8%-72.9%-26.1%-26.7%-27.9%-29.3%
3 Year-65.0%-65.3%1.6%-0.9%-15.4%-20.0%
5 Year-50.3%-51.4%44.6%39.4%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is Raymond's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Raymond undervalued compared to its fair value and its price relative to the market?

4.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAYMOND (₹219.95) is trading above our estimate of fair value (₹44.6)

Significantly Below Fair Value: RAYMOND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RAYMOND is good value based on its PE Ratio (4.1x) compared to the Luxury industry average (7.8x).

PE vs Market: RAYMOND is good value based on its PE Ratio (4.1x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: RAYMOND's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RAYMOND is overvalued based on its PB Ratio (0.7x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Raymond forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAYMOND's earnings are forecast to decline over the next 3 years (-12.2% per year).

Earnings vs Market: RAYMOND's earnings are forecast to decline over the next 3 years (-12.2% per year).

High Growth Earnings: RAYMOND's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RAYMOND's revenue (11.7% per year) is forecast to grow faster than the Indian market (9.1% per year).

High Growth Revenue: RAYMOND's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAYMOND's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Raymond performed over the past 5 years?

22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAYMOND has high quality earnings.

Growing Profit Margin: RAYMOND's current net profit margins (4.7%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: RAYMOND's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: RAYMOND's earnings growth over the past year (116.1%) exceeds its 5-year average (22.7% per year).

Earnings vs Industry: RAYMOND earnings growth over the past year (116.1%) exceeded the Luxury industry 6.4%.


Return on Equity

High ROE: RAYMOND's Return on Equity (16.9%) is considered low.


Next Steps

Financial Health

How is Raymond's financial position?


Financial Position Analysis

Short Term Liabilities: RAYMOND's short term assets (₹46.8B) do not cover its short term liabilities (₹49.0B).

Long Term Liabilities: RAYMOND's short term assets (₹46.8B) exceed its long term liabilities (₹10.1B).


Debt to Equity History and Analysis

Debt Level: RAYMOND's debt to equity ratio (124.7%) is considered high.

Reducing Debt: RAYMOND's debt to equity ratio has increased from 114.2% to 124.7% over the past 5 years.

Debt Coverage: RAYMOND's debt is not well covered by operating cash flow (16.8%).

Interest Coverage: RAYMOND's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: RAYMOND has a high level of physical assets or inventory.

Debt Coverage by Assets: RAYMOND's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Raymond's current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAYMOND's dividend (1.37%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: RAYMOND's dividend (1.37%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: RAYMOND has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RAYMOND's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.6%), RAYMOND's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Gautam Singhania (54yo)

21.17s

Tenure

₹115,855,200

Compensation

Mr. Gautam Hari Singhania has been the Managing Director at Raymond Limited since 1999. Mr. Singhania is In Charge of all companies and subsidiaries of Raymond Group in India and abroad. He joined Raymond  ...


CEO Compensation Analysis

Compensation vs Market: Gautam's total compensation ($USD1.54M) is above average for companies of similar size in the Indian market ($USD336.89K).

Compensation vs Earnings: Gautam's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gautam Singhania
Chairman & MD21.17yrs₹115.86m0.0085% 1.2m
Sanjay Bahl
Group Chief Financial Officer4.17yrs₹40.55m0.0086% 1.2m
Thomas Fernandes
Director of Secretarial11.33yrs₹11.23m0.00015% 21.3k
S. Gupta
President of Corporate & Shirting Businessno datano datano data
J. Mukund
Head of Investor Relations3.42yrsno datano data
Ram Bhatnagar
VP and Head of Sales & Distributionno data₹8.32mno data
K. Narayan
President of Human Resourcesno data₹19.22mno data
S. Pokharna
President of Commercialno data₹11.23mno data
Gaurav Mahajan
President of Group Apparelno datano datano data
Sudhanshu Pokhriyal
President of Suitingno datano datano data

7.8yrs

Average Tenure

59yo

Average Age

Experienced Management: RAYMOND's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gautam Singhania
Chairman & MD21.17yrs₹115.86m0.0085% 1.2m
Surya Gupta
Non-Executive Director1.25yrsno datano data
Ishwar Agarwal
Independent Director13.75yrs₹2.75mno data
Pradeep Guha
Independent Director10.75yrs₹3.30mno data
Ashish Kapadia
Independent Director0.33yrno datano data
Shiv Kumar
Independent Director1.08yrs₹300.00kno data
Nawaz Singhania
Non-Executive Director5.92yrs₹1.75m0.0039% 549.0k
Dinesh Lal
Additional Independent Director0.58yrno datano data
Mukeeta Jhaveri
Additional Independent Woman Director0.58yrno datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Board: RAYMOND's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Raymond Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Raymond Limited
  • Ticker: RAYMOND
  • Exchange: NSEI
  • Founded: 1925
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹14.222b
  • Shares outstanding: 64.72m
  • Website: https://www.raymond.in

Number of Employees


Location

  • Raymond Limited
  • New Hind House
  • Narottam Morarjee Marg
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYWK.FOTCPK (Pink Sheets LLC)SHS UNSPONSOREDUSUSDNov 1994
RAYMOBDL (Bourse de Luxembourg)SHS UNSPONSOREDLUUSDNov 1994
500330BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1995
RAYMONDNSEI (National Stock Exchange of India)YesEquity SharesININROct 1995

Biography

Raymond Limited operates as a textile, lifestyle, and branded apparel company in India and internationally. It operates through Textile, Shirting, Apparel, Garmenting, Tools & Hardware, Auto Components, and Others segments. The company offers wool, poly-wool, silk, polyester viscose blended, cotton blended, linen blended, and other blended suiting fabrics; and cotton and linen shirting fabrics under the Raymond Fine Fabrics brand name. It also provides suits, jackets, trousers, and shirts; denim fabrics; menswear under the Raymond Ready-To-Wear, Park Avenue, Color Plus, Parx brands; and ethnic wear under the Ethnix brands. In addition, the company offers steel files, cutting tools, hand tools, and power tools; and starter gears, water pump bearings, and flexplates. Further, it is involved in the non-scheduled airline operation and real estate development businesses. It has 1,444 retail stores, including 1,392 stores in approximately 600 towns and cities in India, and 52 overseas stores in 9 countries. Raymond Limited was founded in 1925 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:11
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.