01 — At a Glance
The Great Undressing: From Suits to Satellites
- 52-Week High / Low₹784 / ₹343
- Q3 FY26 Revenue₹557 Cr
- Q3 FY26 PAT₹7.22 Cr
- TTM EPS₹821.76
- Annualised EPS (Q3)₹2.16
- Book Value / Share₹488
- Price to Book0.76x
- Debt to Equity0.32x
- ROCE1.64%
- Return Over 3 Years11.2%
The Plot Twist: This company is trading below book value at 0.76x P/BV, has negative 1-year returns of -27.5%, a laughably low ROCE of 1.64%, and a P/E that makes no sense because the Annualised Q3 EPS is ₹2.16 while the stock trades at 13.1x. That’s because Q3 PAT is ₹7.22 crore on ₹557 crore revenue — which should horrify you. Or maybe excite you. Depends on if you read the fine print: TTM EPS of ₹821.76 is legacy glory from demerger gains. The core operations? A slow-motion car crash turning into an aerospace moon shot.
02 — Introduction: A Company Getting Divorced (Badly)
When Your Family Goes to Court, Your Stock Goes to the ER
Raymond Limited was incorporated in 1925. They made suits. Really good suits. Your grandfather wore Raymond. Your father wore Raymond. You might have worn Raymond, if you ever got invited to a wedding where jeans weren’t acceptable.
But somewhere around 2020, the Raymond board looked at the balance sheet and had an existential crisis. “We’re good at three things — textiles, real estate, and engineering components. These are completely different.” So they decided to demerge like an arranged marriage ending badly. In FY24, Raymond Lifestyle got divorced. In FY25, Raymond Realty got divorced. By May 2025, they were officially separate legal entities. Each was supposed to unlock value. Instead, the parent company — now a orphaned engineering business — has PAT collapsing faster than a cheap suit in monsoon rains.
Q3 FY26 is the first full quarter post-demergers. The numbers? Stunning. Q3 PAT is ₹7.22 crore — down 93% from ₹10.83 crore in Q3 FY25. Revenue is ₹557 crore (up 19.5% YoY), but profit barely exists. The ROCE is 1.64%. The stock has fallen 40% in 6 months and 27.5% in 1 year. But here’s the twist: deep inside this carcass, there’s a defense contractor doing 49% growth in aerospace that’s being called the “preferred supplier to top 3 Global Aircraft Engine Manufacturers.” The market is pricing the ghost stories. The business is trying to write new ones.
Management’s Message (Feb 2026 Concall): Management explicitly said, “we’re not yet” unlisting/splitting the aerospace and auto businesses. They want “critical scale of EBITDA” and for “external macroeconomic factors, specifically global trade pressures… to settle” first. Translation: give us 2-3 more years. The tariff uncertainty from the U.S., they warned, is causing “logistical complexities and temporary scheduling delays.” When aerospace guys talk about U.S. tariffs, normal investors should listen. The order book, they said, covers a “safe” 2.5-year visibility period.
03 — Business Model: Flying Blind (Literally)
From Zoot Suits to Missile Parts. The Career Pivot Nobody Asked For.
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