Raymond shares rebound; zoom 5% amid family feud! Where is the stock headed?
On 13 November, Gautam Singhania announced separation from wife Nawaz Modi following which there have been reports of Modi asking for 75 per cent of the industrialist’s wealth as part of the divorce settlement.
- Dec 6, 2023,
- Updated Dec 6, 2023 12:02 PM IST
Shares of Raymond staged a smart recovery in Wednesday's trading session. The stock surged over 5 per cent to hit an intraday day high of Rs 1666.4 on the Bombay stock exchange.
The stock had come under heavy selling pressure amid bitter feud between Gautam Singhania, Chairman and MD of Raymond, and his wife Nawaz Modi.
On 13 November, Gautam Singhania announced separation from wife Nawaz Modi following which there have been reports of Modi asking for 75 per cent of the industrialist’s wealth as part of the divorce settlement.
The stock price was hovering around 1800 levels on November 13, 2023, and it came down to Rs 1500 post the announcement of separation.
Gautam Singhania also reached out to the company’s board and employees in an internal communication to assure them that the messy divorce settlement proceedings will not have any impact on the company and its businesses.
He also highlighted recent achievements, including the expansion of the engineering business through the acquisition of MPPL, entry into sectors like aerospace, defense, and electric vehicle components, and securing two significant real estate projects in the Mumbai Metropolitan Region.
Where is the stock headed?
"From a technical point of view, the stock is going through a price-wise correction post the recent rally and has retraced slightly over 50 percent of the rally in the current financial year and is heading towards the 61.80% Fibonacci retracement on the weekly time frame. The recent fall from its ATH has placed the counter slightly below the 200 SMA on the daily time frame and led it to the oversold territory," said Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One.
"From here on, a sustainable breakdown below the 1535 sub-zone on a weekly time frame (61.80% Fibonacci retracement) could further disrupt the price action in the counter, and it may plunge to lower levels. While on the higher end, the cluster of EMAs around 1800 is likely to be seen as a sturdy hurdle, and a decisive breakout could only trigger momentum for the continuation of its primary trend. Hence, for now, one needs to keep a close watch on the mentioned levels from a short to medium-term perspective," Krishan added.
Recently, ICICI Securities initiated its coverage on the stock with a Hold recommendation on the stock with a share price target of Rs 1,860. It highlighted challenging demand environment, increased competition and rising input cost as key risks to the stock’s upside.
Motilal Oswal has a ‘buy’ rating on the stock with a target price of Rs 2,600. It said that de-merger and capital infusion by the promoter are key drivers for the company.
"Raymond’s real estate business is also a growth driver, it added. Motilal Oswal expects revenues to grow at a CAGR of 11 percent and EBITDA to grow at a CAGR of 12 percent over FY23-27," it added.
Jefferies also has a ‘Buy’ rating on the stock with a target price of Rs 2,600. "Raymond is already net cash and is set to list its lifestyle and real estate businesses separately, noted the brokerage," it said.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
Also read: Gautam Adani enters top 15 billionaires list, inches closer to Mukesh Ambani
Shares of Raymond staged a smart recovery in Wednesday's trading session. The stock surged over 5 per cent to hit an intraday day high of Rs 1666.4 on the Bombay stock exchange.
The stock had come under heavy selling pressure amid bitter feud between Gautam Singhania, Chairman and MD of Raymond, and his wife Nawaz Modi.
On 13 November, Gautam Singhania announced separation from wife Nawaz Modi following which there have been reports of Modi asking for 75 per cent of the industrialist’s wealth as part of the divorce settlement.
The stock price was hovering around 1800 levels on November 13, 2023, and it came down to Rs 1500 post the announcement of separation.
Gautam Singhania also reached out to the company’s board and employees in an internal communication to assure them that the messy divorce settlement proceedings will not have any impact on the company and its businesses.
He also highlighted recent achievements, including the expansion of the engineering business through the acquisition of MPPL, entry into sectors like aerospace, defense, and electric vehicle components, and securing two significant real estate projects in the Mumbai Metropolitan Region.
Where is the stock headed?
"From a technical point of view, the stock is going through a price-wise correction post the recent rally and has retraced slightly over 50 percent of the rally in the current financial year and is heading towards the 61.80% Fibonacci retracement on the weekly time frame. The recent fall from its ATH has placed the counter slightly below the 200 SMA on the daily time frame and led it to the oversold territory," said Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One.
"From here on, a sustainable breakdown below the 1535 sub-zone on a weekly time frame (61.80% Fibonacci retracement) could further disrupt the price action in the counter, and it may plunge to lower levels. While on the higher end, the cluster of EMAs around 1800 is likely to be seen as a sturdy hurdle, and a decisive breakout could only trigger momentum for the continuation of its primary trend. Hence, for now, one needs to keep a close watch on the mentioned levels from a short to medium-term perspective," Krishan added.
Recently, ICICI Securities initiated its coverage on the stock with a Hold recommendation on the stock with a share price target of Rs 1,860. It highlighted challenging demand environment, increased competition and rising input cost as key risks to the stock’s upside.
Motilal Oswal has a ‘buy’ rating on the stock with a target price of Rs 2,600. It said that de-merger and capital infusion by the promoter are key drivers for the company.
"Raymond’s real estate business is also a growth driver, it added. Motilal Oswal expects revenues to grow at a CAGR of 11 percent and EBITDA to grow at a CAGR of 12 percent over FY23-27," it added.
Jefferies also has a ‘Buy’ rating on the stock with a target price of Rs 2,600. "Raymond is already net cash and is set to list its lifestyle and real estate businesses separately, noted the brokerage," it said.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
Also read: Gautam Adani enters top 15 billionaires list, inches closer to Mukesh Ambani