1. At a Glance
A century-old suit-maker now moonlighting as a real estate developer. After the lifestyle business demerger, Raymond is reinventing itself. Stock at ₹703 trades at a P/E of 192 – investors are clearly paying for a fashion show in slow motion.
2. Introduction with Hook
Imagine James Bond selling apartments instead of tuxedos – that’s Raymond 2.0. The company demerged its apparel biz, pivoted into real estate and engineering, and booked a one-time profit the size of a skyscraper (₹7,636 Cr FY25). Too good to be real? Let’s suit up.
3. Business Model (WTF Do They Even Do?)
- Pre-Demerger: Fabrics, apparel, FMCG, engineering.
- Post-Demerger: Real estate, engineering, residual businesses.
- Revenue Drivers: Project JDA tie-ups, realty cash inflows, residual textile earnings.
In short, they sell dreams in brick and fabric.
4. Financials Overview
- Revenue FY25: ₹1,947 Cr (sharp fall post demerger)
- Net Profit FY25: ₹7,636 Cr (other income jackpot)
- OPM: 7%
- ROCE: 1.6%
Core business is modest, profits inflated by extraordinary gains.
5. Valuation
- P/E: 192 (markets value it like a luxury penthouse)
- P/B: 1.26x
Fair Value Range: ₹500–₹650 considering normalized earnings.
6. What’s Cooking – News, Triggers, Drama
- Lifestyle arm listed separately (RLL).
- Real estate demerger approved, Raymond now a focused play.
- Multiple JDAs in Mumbai worth ₹5,000 Cr+.
- Cybersecurity incident (because drama never ends).
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Assets | ₹13,001Cr | ₹7,716Cr |
| Liabilities | ₹8,450Cr | ₹4,000Cr |
| Borrowings | ₹4,181Cr | ₹740Cr |
| Net Worth | ₹4,618Cr | ₹3,717Cr |
Debt significantly reduced, assets resized post demerger.
8. Cash Flow – Sab Number Game Hai
| Particulars | FY24 | FY25 |
|---|---|---|
| Operating CF | ₹533Cr | ₹233Cr |
| Investing CF | ₹-1,042Cr | ₹-232Cr |
| Financing CF | ₹502Cr | ₹-104Cr |
Free cash is meh; big inflows came from non-operating sources.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 0.6% |
| ROCE | 1.6% |
| PAT Margin | 392% (thanks to one-off) |
| D/E | 0.2x |
| P/E | 192 |
Sexy optics, stressy fundamentals.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹8,215Cr | ₹1,199Cr | ₹537Cr |
| FY24 | ₹973Cr | ₹16Cr | ₹1,643Cr |
| FY25 | ₹1,947Cr | ₹132Cr | ₹7,636Cr |
PAT ballooned because of other income, not core ops.
11. Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| DLF | 7,993 | 4,657 | 44 |
| Lodha | 14,425 | 2,964 | 43 |
| Raymond | 1,947 | 7,636 | 192 |
Raymond’s earnings story is “one-time wonder” compared to peers.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 48.9%
- FIIs: 13.8%
- DIIs: 4.8%
- Public: 32.5%
Stable promoter control, public interest rising.
13. EduInvesting Verdict™
Raymond reinvented itself – from suits to skyscrapers. But the current profits are a mirage of one-offs. Core real estate execution will decide if the stock remains premium or fades like last season’s fashion.
Written by EduInvesting Team | 27 July 2025
Tags: Raymond Ltd, Real Estate, Textile Demerger, High P/E, EduInvesting Premium
