Please refer to important disclosures at the end of this report
ith over 60% market share in India, Raymond Ltd. is one of the largest
integrated manufacturers of worsted fabric in the world. The company comprises
of the following divisions namely Textiles, Engineering and Aviation. The
company maintains its focus on branded textiles and apparels through retail
revamp, opening of new stores and aggressive marketing. It is on track to
complete the targeted 150 store revamps by FY17. The renovated stores have
reported SSG of ~15%. To restore lost demand the management carried out a
set of actions such as adapting to new payment modes to counter cash crunch,
offering various cash-back schemes and customer loyalty program offers,
because of which the branded apparels segment is growing. The company also
carried out cost initiatives such as controlled A&P spending, renegotiating with
vendors, manufacturing cost optimization. ROC should improve over the next
2-3 years driven by margin improvement in apparel, garmenting and highe
asset turns. Raymond continue to derive strength from the resourceful and
experienced promoter group and management, dominant position of the
company in the worsted suiting fabrics industry, diversified revenue stream
supported by established brands, integrated operations and healthy liquidit
position. Hence Buy.
CMP `730
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 42.4
MF / Banks / Indian Fls 22.1
FII / NRIs / OCBs 11.0
Indian Public / Others 24.5
Abs. (%) 3m 1yr 3yr
Sensex 7.4 13.6 28.2
Raymonds 42.2 82.5 119.8
52 Week High / Low 749/395
Avg. Daily Volume 61,624
Market Cap (
cr) 4,480
BSE Sensex 29,319
Nifty 9,105
Face Value (
Reuters Code RYMD.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Others | Textiles
April 19, 2017
Raymond | Textiles
pril 19, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Raymond
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15