Latest news with #JointDevelopmentAgreements
Business Standard
16 hours ago
- Business
- Business Standard
Raymond Realty makes market debut after demerger
Shares of Raymond Realty, the recently demerged real estate arm of Raymond, listed on the stock exchanges today. The stock debuted at Rs 1,000 on the NSE, compared to a discovered price of Rs 1,039.30. On the BSE, it opened at Rs 1,005, against a discovered price of Rs 1,031.30. At last check, the stock was trading at Rs 1,034.60 on the NSE and Rs 1,002 on the BSE. The demerger became effective on 1 May 2025. Under the scheme, shareholders received one share of Raymond Realty for every share held in Raymond. This is the Raymond Group's second major restructuring move, following the demerger and listing of Raymond Lifestyle in September 2024. The group aims to unlock value through a vertical-focused corporate structure. In the fourth quarter of FY25, Raymond Realty reported revenue of Rs 766 crore, up 13% from Rs 677 crore in Q4 FY24. EBITDA rose to Rs 194 crore from Rs 171 crore in the same period last year, with EBITDA margin improving to 25.3%. The company signed two new Joint Development Agreements (JDAs) in Mahim and Wadala, with a combined Gross Development Value (GDV) of approximately Rs 6,800 crore. These additions raised the total potential revenue from Raymond Realtys portfolio to nearly Rs 40,000 crore, including Rs 25,000 crore from its Thane land parcel and Rs 14,000 crore from JDA-led projects. Booking value in Q4 FY25 stood at Rs 636 crore, supported by strong demand for projects such as The Address by GS 2.0, Invictus, Park Avenue High Street Retail in Thane, and The Address by GS in Bandra. The real estate division also turned net cash surplus, reporting cash reserves of Rs 399 crore. Meanwhile, shares of Raymond were up 5.56%, while Raymond Lifestyle slipped 1.2%.
Time of India
16 hours ago
- Business
- Time of India
Raymond Realty listing: Shares open below discovered price; brokerages still bullish on long-term prospects
Shares of Raymond Realty listed on the BSE at Rs 1,005 and on the NSE at Rs 1,000 on Tuesday, marking a weaker debut than the discovered price of Rs 1,039.30 on the NSE and Rs 1,031.30 on the BSE. Tired of too many ads? go ad free now According to ET, the listing followed the real estate arm's demerger from Raymond Ltd, giving shareholders one Raymond Realty share for every Raymond Ltd share held, thus directly exposing them to the group's property business for the first time. Brokerages remain bullish despite the lower-than-expected opening. As reported by ET, Ventura Securities has pegged a target price of Rs 1,383 per share based on FY28 DCF projections, while SBI Securities values the stock between Rs 897 and Rs 1,430 depending on valuation multiples. SBI has assigned a base case fair value of Rs 1,148, assuming a 10 per cent YoY EBITDA growth in FY26 and a 13x EV/EBITDA multiple. Raymond Realty's flagship operations are centred on a 100-acre land parcel in Thane, of which 40 acres with 4 million sq ft carpet area are under active development, holding an estimated revenue potential of Rs 9,000 crore. The remaining 60 acres will be developed over the next 6–8 years, potentially adding Rs 16,000 crore in revenue. Combined, the Thane land bank carries a Gross Development Value (GDV) of Rs 25,000 crore. The company has also expanded through six Joint Development Agreements (JDAs) across Mumbai in Bandra, Mahim, Sion and Wadala. The JDA portfolio is expected to generate Rs 14,000 crore in revenue, with the model allowing Raymond Realty to skip land acquisition costs and focus on execution, a strategy that keeps its balance sheet light. Tired of too many ads? go ad free now Around 40–45 per cent of future revenues are expected to come from JDA projects over the next seven years, rising to 70 per cent in the long term. According to news agency PTI, chairman and MD Gautam Singhania emphasised financial discipline amid heated real estate pricing, stating, 'I will do a deal only if it delivers on financial returns.' CEO Harmohan Sahni reinforced this approach, saying the firm will not sign projects unless profit margins are at least 20 per cent. Sahni revealed that out of 1,400 projects evaluated, only six were finalised. For FY25, Raymond Realty posted a 45 per cent YoY increase in revenue to Rs 2,313 crore and a 37 per cent rise in EBITDA to Rs 507 crore. However, EBITDA margin declined slightly to 21.9 per cent. In Q4FY25, revenue was Rs 766 crore, EBITDA stood at Rs 194 crore, and pre-sales fell 24 per cent YoY to Rs 636 crore due to no new launches. The company ended FY25 with a net cash surplus of Rs 395 crore, supported by Rs 585 crore in cash and equivalents and gross debt of Rs 190 crore. Over FY25–28, it projects a CAGR of 20 per cent in revenue, 17 per cent in EBITDA, and 15.9 per cent in net earnings, with EBITDA and net margins expected to remain steady at 20 per cent and 10.5 per cent, respectively. Raymond Realty also aims to maintain a net-debt-free status and a RoE of 16.2 per cent by FY28. (Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India.)
Economic Times
20 hours ago
- Business
- Economic Times
Raymond Realty shares to list on exchanges today. What to expect?
Raymond Realty Limited is debuting on the stock market today after separating from Raymond. This move allows investors direct access to its real estate business. Brokerages predict positive listing prospects for Raymond Realty. The company focuses on a large land parcel in Thane and has joint development agreements in Mumbai. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Raymond Realty financial performance Tired of too many ads? Remove Ads Shares of Raymond Realty Ltd (RRL) are set to list on the stock exchanges today, July 1, following its demerger from Raymond. The company, which has emerged as a focused real estate player within the group, is getting independently listed for the first time, unlocking value for shareholders and enabling investors to gain direct exposure to its real estate per the terms of the demerger, every shareholder of Raymond Ltd has received one share of Raymond Realty for every share are optimistic about Raymond Realty's listing prospects. Ventura Securities has pegged a FY28 DCF-based target price of Rs 1,383 per share, while SBI Securities expects the listing price to be in the range of Rs 897 to Rs 1,430, depending on the valuation multiple assigned by the firm is likely to list at a FY26E EV/EBITDA multiple of 11–15x, and with an expected EBITDA growth of 0–20% over FY25, SBI Securities has assigned a base case fair value of Rs 1,148 per share, assuming 10% YoY EBITDA growth in FY26 and a 13x EV/EBITDA valuations are benchmarked against peers such as Arkade Developers, Keystone Realtors, and Sunteck Realty, which currently trade at an average EV/EBITDA multiple of Realty's operations are centered around a 100-acre land parcel in Thane. Of this, approximately 40 acres are currently under development with a carpet area of 4 million sq ft, having a revenue potential of around Rs 9,000 remaining 60 acres are expected to be developed over the next 6–8 years, with a projected carpet area of 7 million sq ft and an estimated revenue potential of Rs 16,000 crore. The total GDV of the Thane land bank is thus pegged at Rs 25,000 addition to its Thane projects, the company has signed six Joint Development Agreements (JDAs) across key locations in Mumbai including Bandra, Mahim, Sion, and Wadala. The estimated revenue potential from these JDA projects is Rs 14,000 the JDA model, RRL is not required to invest in land acquisition and only manages the construction and execution, thereby keeping its balance sheet forward, around 40–45% of revenues are expected to come from JDAs over the next 7 years, increasing to nearly 70% in the long term. In FY26, the company plans to launch two new projects on its own land in Thane and four new projects under the JDA model. Over the next 3–4 years, JDA projects are expected to contribute nearly half of the company's Realty reported a 13% year-on-year growth in real estate revenue and EBITDA in Q4FY25, with revenue at Rs 766 crore and EBITDA at Rs 194 crore. For the full year FY25, revenue grew 45% YoY to Rs 2,313 crore and EBITDA rose 37% YoY to Rs 507 crore. The EBITDA margin for Q4FY25 stood at 25.3%, unchanged YoY, while the FY25 EBITDA margin was 21.9%, down 140 basis points for Q4FY25 stood at Rs 636 crore, down 24% YoY due to the absence of new project launches. As of March 2025, the company had a net cash surplus of Rs 395 crore, with closing cash and equivalents at Rs 585 crore and gross debt of Rs 190 crore. The company follows the Percentage Completion Method for revenue ahead, RRL's medium-term outlook is focused on developing 60 acres in Thane over 6–8 years and deepening its presence in Mumbai redevelopment through the JDA route. The company's targeted RoCE for projects is 20–22%, and it is confident of surpassing this guidance. Over FY25–28E, RRL expects revenue, EBITDA, and net earnings to grow at a CAGR of 20%, 17%, and 15.9% respectively, reaching Rs 4,065 crore, Rs 813 crore, and Rs 426 crore. EBITDA and net margins are expected to remain steady at 20% and 10.5% respectively. With its asset-light development approach, the company aims to remain net debt free, enabling it to maintain a healthy RoE of 16.2% by to Ventura Securities, the demerger of Raymond Realty provides strategic clarity and unlocks shareholder value by enabling the company to pursue a dedicated and sustainable real estate growth strategy.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
20 hours ago
- Business
- Time of India
Raymond Realty shares to list on exchanges today. What to expect?
Shares of Raymond Realty Ltd (RRL) are set to list on the stock exchanges today, July 1, following its demerger from Raymond. The company, which has emerged as a focused real estate player within the group, is getting independently listed for the first time, unlocking value for shareholders and enabling investors to gain direct exposure to its real estate operations. As per the terms of the demerger, every shareholder of Raymond Ltd has received one share of Raymond Realty for every share held. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Full mouth dental implants for the elderly in Malaysia - see prices in 2025 Dental Implants | Search Ads Search Now Undo Brokerages are optimistic about Raymond Realty's listing prospects. Ventura Securities has pegged a FY28 DCF-based target price of Rs 1,383 per share, while SBI Securities expects the listing price to be in the range of Rs 897 to Rs 1,430, depending on the valuation multiple assigned by the market. The firm is likely to list at a FY26E EV/EBITDA multiple of 11–15x, and with an expected EBITDA growth of 0–20% over FY25, SBI Securities has assigned a base case fair value of Rs 1,148 per share, assuming 10% YoY EBITDA growth in FY26 and a 13x EV/EBITDA multiple. These valuations are benchmarked against peers such as Arkade Developers, Keystone Realtors, and Sunteck Realty, which currently trade at an average EV/EBITDA multiple of 17x. Live Events Raymond Realty's operations are centered around a 100-acre land parcel in Thane. Of this, approximately 40 acres are currently under development with a carpet area of 4 million sq ft, having a revenue potential of around Rs 9,000 crore. The remaining 60 acres are expected to be developed over the next 6–8 years, with a projected carpet area of 7 million sq ft and an estimated revenue potential of Rs 16,000 crore. The total GDV of the Thane land bank is thus pegged at Rs 25,000 crore. Also read: Silver price will explode in July: Rich Dad Poor Dad author Robert Kiyosaki In addition to its Thane projects, the company has signed six Joint Development Agreements (JDAs) across key locations in Mumbai including Bandra, Mahim, Sion, and Wadala. The estimated revenue potential from these JDA projects is Rs 14,000 crore. Under the JDA model, RRL is not required to invest in land acquisition and only manages the construction and execution, thereby keeping its balance sheet light. Going forward, around 40–45% of revenues are expected to come from JDAs over the next 7 years, increasing to nearly 70% in the long term. In FY26, the company plans to launch two new projects on its own land in Thane and four new projects under the JDA model. Over the next 3–4 years, JDA projects are expected to contribute nearly half of the company's pre-sales. Raymond Realty financial performance Raymond Realty reported a 13% year-on-year growth in real estate revenue and EBITDA in Q4FY25, with revenue at Rs 766 crore and EBITDA at Rs 194 crore. For the full year FY25, revenue grew 45% YoY to Rs 2,313 crore and EBITDA rose 37% YoY to Rs 507 crore. The EBITDA margin for Q4FY25 stood at 25.3%, unchanged YoY, while the FY25 EBITDA margin was 21.9%, down 140 basis points YoY. Pre-sales for Q4FY25 stood at Rs 636 crore, down 24% YoY due to the absence of new project launches. As of March 2025, the company had a net cash surplus of Rs 395 crore, with closing cash and equivalents at Rs 585 crore and gross debt of Rs 190 crore. The company follows the Percentage Completion Method for revenue recognition. Looking ahead, RRL's medium-term outlook is focused on developing 60 acres in Thane over 6–8 years and deepening its presence in Mumbai redevelopment through the JDA route. The company's targeted RoCE for projects is 20–22%, and it is confident of surpassing this guidance. Over FY25–28E, RRL expects revenue, EBITDA, and net earnings to grow at a CAGR of 20%, 17%, and 15.9% respectively, reaching Rs 4,065 crore, Rs 813 crore, and Rs 426 crore. EBITDA and net margins are expected to remain steady at 20% and 10.5% respectively. With its asset-light development approach, the company aims to remain net debt free, enabling it to maintain a healthy RoE of 16.2% by FY28. According to Ventura Securities, the demerger of Raymond Realty provides strategic clarity and unlocks shareholder value by enabling the company to pursue a dedicated and sustainable real estate growth strategy. Also read: Investors must moderate return expectations, stick to asset allocation: Nilesh Shah ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Yahoo
15-05-2025
- Business
- Yahoo
Raymond Ltd (BOM:500330) Q4 2025 Earnings Call Highlights: Strong Real Estate Growth and ...
Total Income (Continuing Operations): ?601 crore in Q4 FY25; ?2,105 crore for FY25. EBITDA (Continuing Operations): ?99 crore in Q4 FY25; ?335 crore for FY25. EBITDA Margin (Continuing Operations): 16.4% in Q4 FY25; 15.9% for FY25. Engineering Business Sales: ?528 crore in Q4 FY25. Engineering Business EBITDA: ?81 crore in Q4 FY25. Engineering Business EBITDA Margin: 15.3% in Q4 FY25. Net Cash Surplus: ?263 crore as of March 2025. Gross Debt: ?677 crore as of March 2025. Cash and Cash Equivalents: ?940 crore as of March 2025. Real Estate Revenue: ?766 crore in Q4 FY25, a 13% growth from Q4 FY24. Real Estate EBITDA: ?194 crore in Q4 FY25, a 13% growth from Q4 FY24. Real Estate EBITDA Margin: 25.3% in Q4 FY25. Real Estate Bookings: ?636 crore in Q4 FY25. Real Estate Net Cash Surplus: Close to ?400 crore as of March 2025. Warning! GuruFocus has detected 3 Warning Signs with BOM:500330. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Raymond Ltd (BOM:500330) reported a strong quarterly performance with a total income of ?601 crore and an EBITDA of ?99 crore, achieving a margin of 16.4% in Q4 FY25. The company successfully demerged its real estate business, positioning Raymond Realty as an independent entity, which is expected to pursue its growth trajectory. Raymond Ltd remains a net debt-free business with a net cash surplus of ?263 crore as of March 2025. The real estate segment reported a 13% year-on-year growth in revenue, reaching ?766 crore in Q4 FY25, with an EBITDA margin of 25.3%. The aerospace business is showing promising signs of recovery, with anticipated growth momentum following the resolution of production issues faced by major aircraft manufacturers. Export markets for the auto ancillary and engineering consumable segments remain subdued due to the ongoing slowdown in the European automotive market and disruptions caused by the Red Sea shipping crisis. The Indian economy's growth rate in Fiscal 2025 was slightly lower than the previous year, which could impact overall market dynamics. Recent policy changes have introduced uncertainty impacting markets worldwide, posing challenges for strategic decision-making. The auto sector component segment is experiencing recent softness due to weaker market conditions, which may impact near-term growth. The real estate market faces potential delays in project launches due to approval processes and legal constraints, particularly in the Mumbai metropolitan region. Q: What are the peak funding requirements for the Realty division's Joint Development Agreements (JDAs), and how do the construction funding rates compare to other developers? A: Harmohan Sahni, CEO - Realty: The peak funding requirement for each JDA ranges between ?250 crore to ?400 crore, depending on the project. Amit Agarwal, Group CFO: The interest rates for construction funding are between 8% to 9.9%, which are competitive due to the company's good credit rating. Q: How does Raymond Ltd plan to manage contractor capacity for its projects? A: Harmohan Sahni, CEO - Realty: The contracting process is competitive, with bids from various contractors. While we have used some initial contractors, we also engage smaller contractors for parts of the work. Future contracts will continue to be awarded based on competitive bidding. Q: What is the launch pipeline for JDAs in the current year, particularly in Thane and other areas? A: Harmohan Sahni, CEO - Realty: We plan to launch a few projects in Q3 and Q4, with a possible launch in Thane during Q2. No launches are scheduled for Q1 due to it being a typically low period. Q: How have residential real estate sales trended recently, and are there any signs of market softening? A: Harmohan Sahni, CEO - Realty: Sales were strong in March, compensating for slower months in January and February. April and May have been business as usual, with a temporary dip due to geopolitical tensions, but inquiries have resumed following recent developments. Q: What is the outlook for the aerospace and automotive markets in the coming year? A: Gautam Singhania, Executive Chairman: The aerospace market is recovering well, with Boeing resuming production. The automotive market is mixed, with stronger performance in India compared to overseas. Despite geopolitical challenges, the overall outlook remains positive. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
