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Raymond's share price surged 8%, reaching ₹1,743 on December 10, 2024. The surge is driven by the company’s strong performance in the second quarter of FY25. Raymond's stock opened at ₹1,621 today (December 10). The company’s shares are currently (as of 11.40 am on Dec. 10) trading at ₹1,787, showing approximately 11% gains.
The company reported a significant profit increase from continuing operations, doubling to ₹59 crore from ₹28 crore in the same period last year. Revenue also saw a remarkable increase, soaring to ₹1,045 crore compared to ₹470 crore year-on-year. This impressive growth shows Raymond’s strong operational momentum and effective management strategies that are attracting investors.
Raymond's stock's upward momentum is further supported by its strategic initiatives, particularly in the real estate division. It recently unveiled ‘Park Avenue—High Street Reimagined,’ its new retail space project in Mumbai, Thane. The project is designed to strengthen Raymond's market presence and drive future revenue streams.
Chairman and Managing Director Gautam Hari Singhania underlined the company's commitment to completing projects ahead of the RERA timeline. It gives Raymond a competitive edge and boosts positive market sentiment.
On July 4, 2024, Raymond Limited's board of directors approved the demerger of Raymond Realty into an independent entity. The strategic move would help unlock significant shareholder value and streamline operations for focused growth in the lifestyle, real estate, and engineering sectors. To enable direct benefits from the restructuring, Raymond shareholders will receive one share of Raymond Realty for each share held in Raymond.
The demerger plan awaits approvals from the National Company Law Tribunal (NCLT), shareholders, and creditors. Raymond Realty Limited is then expected to be listed on major stock exchanges, including the BSE and NSE. This will mean new investors and strategic partners looking into this growing real estate sector, which grew 43% year on year to ₹1,593 crore in revenue for FY24.
Strengths in financial discipline and strategic moves, along with the demerger that is underway, would bode well for Raymond's ability to capitalize on emerging market opportunities in the country. It should put Raymond even more firmly on investors' favorite lists.
Analysts see the bullish momentum for Raymond's share prices continuing in the coming days. However, investors are advised to be cautious, as some price volatility is expected.
