Raymond Group Stock: A Promising Buy with 30% Upside Potential
Antique Stock Broking has initiated a Buy call on Raymond Group stock, citing a potential upside of 30%. The company has successfully demerged and listed its Fabric division and Real Estate business, and is now focusing on precision manufacturing and aerospace sectors.
Raymond GroupStock AnalysisUpside PotentialBrokerage RecommendationFinancial GrowthReal EstateJul 18, 2025
With a market capitalisation of Rs 4,676 crore, Raymond Ltd's shares are currently trading at Rs 702 per share, down by 17% from its 52-week high of Rs 847.55 per share. Over the past five years, the stock has delivered an impressive return of 178%.
Leading brokerage firm, Antique Stock Broking, has assigned a Buy call on the stock with a target price of Rs 903 per share, indicating an upside potential of 30% from its current price. The brokerage firm has highlighted several factors contributing to this positive outlook.
The Raymond Group is undergoing a significant transformation as it works to unlock value across its various businesses. The company successfully demerged and listed its Fabric division in September 2024, followed by its Real Estate business in July 2025. Additionally, it has ventured into the precision manufacturing sector, focusing on components for the automotive and aerospace industries.
Currently, Raymond Ltd is active in three main areas: Automotive Components, Engineering Tools, and Aerospace. To enhance its focus, the company is gearing up to establish two specialised subsidiaries. One will be dedicated to defence and aerospace, while the other will focus on auto components, electric vehicles (EVs), and engineering consumables.
Raymond is looking to further expand in these promising sectors, particularly in defence and aerospace, which are supported by robust long-term growth drivers. According to Antique, Raymond’s revenue, EBITDA, and profit are projected to grow at impressive rates of 16%, 38%, and 55% CAGR, respectively. The company’s operating margins are also expected to steadily improve, from 12.2% in FY26 to 14.9% in FY27 and 15.3% in FY28.
Financial highlights show that Raymond reported a revenue growth of 100% to Rs 1,947 crores in FY25 from Rs 973 crores in FY24. Additionally, its net profit grew by 365% to Rs 7,636 crores in FY25 from Rs 1,643 crores in FY24. It is important to note that around Rs 7,584 crore is derived as net profit from its demerged operations, which are now not a part of the main business but are reflected in the profit and loss statement due to accounting standards.
The stock delivered an ROE and ROCE of 182.49% and 0.60%, respectively, and is currently trading at a P/E of 0.60x, which is significantly lower than its industry average of 40.65x.
Raymond Limited is a well-known Indian company that operates in the realms of real estate and engineering. They have a diverse portfolio that includes real estate development, tools and hardware, auto components, and precision parts. Not only does the company work on various real estate projects, but it also provides non-scheduled airline services. In the engineering sector, they manufacture and sell a range of products such as steel files, drills, cutting tools, hand tools, power tool accessories, and auto parts like ring gears, flex plates, and water pump bearings.
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Frequently Asked Questions
What is the current market capitalisation of Raymond Ltd?
The current market capitalisation of Raymond Ltd is Rs 4,676 crore.
What is the target price of Raymond Ltd as per Antique Stock Broking?
Antique Stock Broking has set a target price of Rs 903 per share for Raymond Ltd.
What are the main business segments of Raymond Ltd?
Raymond Ltd is active in three main areas: Automotive Components, Engineering Tools, and Aerospace.
What is the projected CAGR for Raymond’s revenue, EBITDA, and profit?
Raymond’s revenue, EBITDA, and profit are projected to grow at impressive rates of 16%, 38%, and 55% CAGR, respectively.
What is the current P/E ratio of Raymond Ltd compared to its industry average?
Raymond Ltd is currently trading at a P/E of 0.60x, which is significantly lower than its industry average of 40.65x.
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