Latest news with #RaymondLtd
Economic Times
7 days ago
- Business
- Economic Times
Raymond shares may rally up to 30%, Antique Stock Broking says as aerospace thrust fuels growth story
Antique Stock Broking has initiated coverage on Raymond Ltd with a "buy" rating and a target price of Rs 903, implying a potential upside of 30% from the last closing price. The brokerage said Raymond's transformation into a precision manufacturing-focused company, especially its aerospace and auto components verticals—positions it for 'a multi-year period of strong growth.' ADVERTISEMENT 'We expect Raymond to report a consolidated revenue/ EBITDA/ PAT CAGR of 16%/38%/55% with OPM of 12.2%/14.9%/15.3% in FY26E/27E/28E, respectively,' analysts Sanjeev Zarbade and Amit Shah said. The stock was trading at Rs 700.60 on Friday morning, up 0.6% on the BSE. Raymond, once best known for its textiles business, has shed its legacy structure through a string of demergers and realignments. Following the listing of Raymond Lifestyle in September 2024 and Raymond Realty in July 2025, the company now houses its industrial businesses, engineering tools, auto components, and aerospace, under Raymond Ltd. Antique believes this new structure unlocks significant value and operational focus. 'The aerospace vertical will be the main growth driver,' the brokerage said, with meaningful contributions also expected from the auto components and engineering tools specialized subsidiaries, JK Maini Global Aerospace Ltd (JKMGAL) and JK Maini Precision Technologies Ltd (JKMPTL), are being carved out to drive growth in their respective domains. ADVERTISEMENT Raymond's aerospace strategy is built around its 2023 acquisition of Maini Precision Products Ltd (MPPL), a precision engineering firm with a client roster that includes Safran, GE, and Bosch. MPPL manufactures more than 350 components for LEAP engines, which power aircraft models such as the Airbus A320neo and Boeing 737 LEAP engines, a joint venture product of GE and Safran, account for 55% of JKMGAL's aerospace revenue. 'India is CFM's third-largest market and LEAP engines drive 75% of India's commercial airline fleet,' Antique said. With over 2,000 LEAP engines on order and Safran opening its sixth facility in India, Raymond's aerospace unit stands to benefit from deepening supplier relationships. ADVERTISEMENT The brokerage sees India's current 1% share in the global aerospace supply chain as a structural opportunity. Rising global outsourcing, domestic capability improvements, and the China+1 trend could significantly lift Raymond's growth Rs 903 target price is based on a sum-of-the-parts (SOTP) valuation, factoring in a 25x multiple for the aerospace business and 15x for the auto components vertical, adjusted for 66% holding. The brokerage said it expects Raymond's net profit to rise from Rs 520 million in FY25 to Rs 1.92 billion in FY28. ADVERTISEMENT While return ratios are currently modest due to Rs 8.8 billion in goodwill and intangibles, the brokerage said these 'should not concern investors unduly,' citing strong cash flows and a net cash position of Rs 2.2 aerospace division's EBIT margins are expected to remain at 20% by FY28, while the company's consolidated EBITDA margin is forecast to improve from 12.2% in FY26 to 15.3% in FY28. ADVERTISEMENT Raymond shares have rallied 16.6% year-to-date in 2025 and 29% over the past three months, buoyed by investor optimism around its post-restructuring focus. The stock has climbed 16.8% in just the last month. Also read | IREDA shares down 28% in 2025. Can the stock rebound past Rs 185 or is it time to sell? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
7 days ago
- Business
- Time of India
Raymond shares may rally up to 30%, Antique Stock Broking says as aerospace thrust fuels growth story
Antique Stock Broking has initiated coverage on Raymond Ltd with a "buy" rating and a target price of Rs 903, implying a potential upside of 30% from the last closing price. The brokerage said Raymond's transformation into a precision manufacturing-focused company, especially its aerospace and auto components verticals—positions it for 'a multi-year period of strong growth.' 'We expect Raymond to report a consolidated revenue/ EBITDA/ PAT CAGR of 16%/38%/55% with OPM of 12.2%/14.9%/15.3% in FY26E/27E/28E, respectively,' analysts Sanjeev Zarbade and Amit Shah said. The stock was trading at Rs 700.60 on Friday morning, up 0.6% on the BSE. Explore courses from Top Institutes in Select a Course Category Product Management Project Management PGDM Design Thinking CXO Management Data Science Digital Marketing Healthcare healthcare Operations Management Technology Data Science Data Analytics MBA others Leadership Others Artificial Intelligence Finance Degree Public Policy Cybersecurity MCA Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details Raymond, once best known for its textiles business, has shed its legacy structure through a string of demergers and realignments. Following the listing of Raymond Lifestyle in September 2024 and Raymond Realty in July 2025, the company now houses its industrial businesses, engineering tools, auto components, and aerospace, under Raymond Ltd. Antique believes this new structure unlocks significant value and operational focus. 'The aerospace vertical will be the main growth driver,' the brokerage said, with meaningful contributions also expected from the auto components and engineering tools businesses. Two specialized subsidiaries, JK Maini Global Aerospace Ltd (JKMGAL) and JK Maini Precision Technologies Ltd (JKMPTL), are being carved out to drive growth in their respective domains. Aerospace ambitions take flight Raymond's aerospace strategy is built around its 2023 acquisition of Maini Precision Products Ltd (MPPL), a precision engineering firm with a client roster that includes Safran, GE, and Bosch . MPPL manufactures more than 350 components for LEAP engines, which power aircraft models such as the Airbus A320neo and Boeing 737 MAX. These LEAP engines, a joint venture product of GE and Safran, account for 55% of JKMGAL's aerospace revenue. 'India is CFM's third-largest market and LEAP engines drive 75% of India's commercial airline fleet,' Antique said. With over 2,000 LEAP engines on order and Safran opening its sixth facility in India, Raymond's aerospace unit stands to benefit from deepening supplier relationships. The brokerage sees India's current 1% share in the global aerospace supply chain as a structural opportunity. Rising global outsourcing, domestic capability improvements, and the China+1 trend could significantly lift Raymond's growth trajectory. Valuation upside and financial health Antique's Rs 903 target price is based on a sum-of-the-parts (SOTP) valuation, factoring in a 25x multiple for the aerospace business and 15x for the auto components vertical, adjusted for 66% holding. The brokerage said it expects Raymond's net profit to rise from Rs 520 million in FY25 to Rs 1.92 billion in FY28. While return ratios are currently modest due to Rs 8.8 billion in goodwill and intangibles, the brokerage said these 'should not concern investors unduly,' citing strong cash flows and a net cash position of Rs 2.2 billion. The aerospace division's EBIT margins are expected to remain at 20% by FY28, while the company's consolidated EBITDA margin is forecast to improve from 12.2% in FY26 to 15.3% in FY28. Raymond shares have rallied 16.6% year-to-date in 2025 and 29% over the past three months, buoyed by investor optimism around its post-restructuring focus. The stock has climbed 16.8% in just the last month. Also read | IREDA shares down 28% in 2025. Can the stock rebound past Rs 185 or is it time to sell? ( Disclaimer : 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
08-07-2025
- Automotive
- Time of India
Pacts with Safran, P&W to enable Raymond to move up value chain of engine component manufacturing: Gautam Maini, ET Infra
Advt Potential for localisation Advt By , ETInfra Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. The engineering business of Raymond Ltd is aiming for a 15 per cent year-on-year growth in the topline for 2025-26, as the division focuses on going up the value chain and expands its precision engineering products business comprising auto and aerospace components , said Gautam Maini , Chief Executive Officer, Engineering Business, Raymond 2024-25, the engineering business of Raymond, generated a revenue of ₹1,824 crore, more than double from the previous year, while operating profit was at ₹237 crore, up 96 per cent an interview to ET Infra, Maini outlined that in the aerospace and engine component segment, the engineering business has exposure to about 25 companies in the world, including six engine manufacturers such as Safran and Pratt & Whitney 'With Safran, we have had several agreements over the years in various products. We have over 350 part numbers that we already have on the LEAP engine . So, there are very few companies that can boast about having that many part numbers on a high volume narrowbody aircraft engine,' said the recently held Paris Air Show, Safran and Maini Precision Products Ltd, a Raymond Ltd group company under the engineering division, signed a long-term agreement to supply assembled products for the CFM LEAP company already manufactures turbine vanes, forged and machined metallic products for Safran. The company also entered into an agreement with Pratt & Whitney, for long-term supply of precision machined and assembled aerospace components.'It is (agreement with Safran and P&W) just an extension of all of those things where we are going up the value chain, taking on more complex parts, taking on more difficult parts," said highlighted that almost the entire aircraft and engine component manufacturing business of the Raymond group is currently serving overseas customers with no significant exposure to the Indian market.'We will keep exporting and as the domestic market opens up, we will be ready for it. Currently, the exposure is less than 2 per cent and primarily for HAL (Hindustan Aeronautics Ltd),' said Maini.'At present, not a single material that we use today is made in India. Every part we make is from imported material coming from somewhere in the world and, therefore, there is a huge potential in this country to localise the materials,' he the company has exposure to China in terms of sourcing of materials, Maini highlighted that they have not faced any roadblocks. In light of heightened trade tensions with the US, China has undertaken measures to restrict export of materials, especially rare earth metals.'So, right now there are some materials coming from there (China), but they are not in the rare earths category,' said highlighted that the company is in a better position than most other competitors and in control of the supply chain with the ability to source materials from alternate sources, if any export restrictions arise in China.
Mint
01-07-2025
- Business
- Mint
Raymond share price rises 8% on the listing day of Raymond Realty shares
Stock Market Today: Raymond share price gained more than 8% during the morning trades on Tuesday, which also happened to be the listing day of Raymond Realty shares. The prospects of value unlocking have been aiding the rise in Raymond's share price. Raymond share price opened at ₹ 717 levels on the BSE on Tuesday. At the time of opening, the Raymond share was trading more than 1% higher than the previous session's closing price of ₹ 708.80. Raymond share price thereafter gained further to touch intraday highs of ₹ 771.40, which meant gains of more than 8% for Raymond share price during the morning trades. Raymond share price has been rising for the past few days ahead of Raymond Realty shares listing. Raymond share price has seen gains of around 25% during the last few days ahead of Raymond Realty's eagerly anticipated listing. The demerger and listing of Raymond Realty shares is the key trigger that has been driving Raymond share price. For Raymond Ltd, growth engine now has a second independent lever thanks to the demerger and listing of Raymond Realty. Raymond already had a successful demerger and listing of Lifestyle Business, with the listing of Raymond Lifestyle shares. 'Raymond Realty stands as the crown jewel of our transformation—a net debt-free, pure-play real estate entity that has rapidly ascended to become one of the Top 5 developers in the Mumbai Metropolitan Region (MMR), demonstrating our ability to execute at scale in India's most competitive real estate market.' as per Raymond Ltd Going forward, with a significant development pipeline, Raymond Realty is perfectly positioned to tap into India's urban renaissance, as per Raymond. Raymond Realty shares listed at ₹ 1055.20 levels on the BSE and the ₹ 1000 level on the NSE on Tuesday. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
30-06-2025
- Business
- Time of India
Raymond Realty shares to list on exchanges tomorrow, brokerages see target up to Rs 1,383
Shares of Raymond Realty, the real estate arm demerged from Raymond Ltd, are set to debut on the stock exchanges on Monday, July 1. The listing follows the completion of the demerger process, which took effect earlier in May, with shareholders of Raymond Ltd receiving one share of Raymond Realty for every one share held. According to inputs from domestic brokerage firm SBI Securities, the stock is expected to list in the range of Rs 897 to Rs 1,430, based on estimated FY26 EV/EBITDA multiples of 11–15x and EBITDA growth expectations of 0–20% over FY25. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mountain Gear for Extreme Conditions Trek Kit India Learn More Undo In a base case scenario, assuming 10% EBITDA growth in FY26 and an EV/EBITDA multiple of 13x (which factors in a 23.5% discount to peers), the brokerage pegs the fair value at Rs 1,148. SBI Securities notes that Raymond Realty's valuation is benchmarked against a peer average EV/EBITDA multiple of 17x (including listed players like Arkade Developers, Keystone Realtors, and Sunteck Realty). Post listing, analysts expect the Street to monitor key performance indicators (KPIs) such as pre-sales, embedded EBITDA margins, debt levels, and cash flows to evaluate the company's ongoing financial health. Live Events Meanwhile, another brokerage firm Ventura Securities has anticipated a FY28 DCF-based price target of Rs 1,383 per share for the stock. 'Given the substantial opportunities and growth prospects, the demerger of RRL will unlock significant value for shareholders by allowing the company to pursue sustainable growth with a focused, pure-play real estate strategy. RRL is set to be listed in July 2025, and our FY28 DCF-based price target Rs 1,383 per share,' Ventura said in its note. Medium-term outlook and strategy Raymond Realty's operations are primarily concentrated in Thane, where it holds a 100-acre land parcel, with around 60 acres expected to be developed over the next 6–8 years. The revenue contribution from its Joint Development Agreement (JDA) model is expected to be 40–45% in the next 7 years, rising to ~70% thereafter, supporting an asset-light growth model. The company aims to maintain a RoCE (Return on Capital Employed) of 20–22% on its projects and has set internal targets of 15% revenue growth and 20% EBITDA growth annually going forward. Also read: Torrent Pharma shares surge 4% after agreeing to acquire JB Chemicals for Rs 11,900 crore Project pipeline As part of its development plan for FY26, Raymond Realty will launch two new projects on its own land in Thane and four projects under the JDA model. Over the next 3–4 years, JDA-based projects are expected to contribute nearly 50% of the company's annual pre-sales. The company's current portfolio includes a total Gross Development Value (GDV) of approximately Rs 40,000 crore, comprising: Rs 25,000 crore from its own land, with Rs 9,000 crore from under-development parcels and Rs 16,000 crore from future potential development. Rs 14,000 crore from existing JDA projects, both launched and recently signed. Brand positioning Raymond Realty is also working on building a strong brand identity across segments. Its brand portfolio includes: TenX for aspirational housing The Address by GS in the premium segment Invictus by GS in the luxury segment Financials In terms of financial performance, SBI Securities highlights that the real estate business reported a 13% YoY growth in both revenue and EBITDA in Q4FY25, reaching Rs 766 crore and Rs 194 crore, respectively. For FY25, revenue rose 45% YoY to Rs 2,313 crore and EBITDA grew 37% YoY to Rs 507 crore. While Q4 EBITDA margin held steady at 25.3%, the full-year EBITDA margin dipped 140 bps YoY to 21.9%. Pre-sales in Q4FY25 stood at Rs 636 crore, down 24% YoY, mainly due to the absence of new launches during the quarter. As of March 31, 2025, the company had a net cash surplus of Rs 395 crore, with closing cash and cash equivalents at Rs 585 crore and gross debt at Rs 190 crore. The company follows the Percentage Completion Method for revenue recognition.
