Why Raymond, Raymond Realty shares are surging today

Shares of Raymond Ltd zoomed 14.53 per cent to hit a 52-week high of Rs 764 in Thursday's trade, while Raymond Realty Ltd rose 6.30 per cent to touch a day's high of Rs 537.40. Shares of Raymond Lifestyle Ltd also gained 2.29 per cent to hit a high of Rs 665.15.

"Raymond stocks are witnessing strong buying interest following the completion of the group's demerger, which has separated its businesses into distinct listed entities," said Ravi Singh, Chief Research Officer at Master Capital Services.

"Raymond Realty has emerged as a pure-play real estate company, while Raymond is now focused on engineering and precision technology. Raymond Lifestyle has also been separated as an independent listed entity. The restructuring provides greater clarity on the performance and valuation of the individual businesses, which was difficult under the earlier structure," Singh added.

"With the demerger now completed, investors are reassessing the standalone entities. This has led to increased trading activity and buying interest across the Raymond Group stocks. The sharp moves in Raymond and Raymond Realty reflect this post-demerger repricing and the market's response to the potential value unlocking," he further stated.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said Raymond's expansion of its precision engineering business into aerospace manufacturing is a positive for the company's longer-term prospects.

"Raymond is expanding its precision engineering division into aerospace manufacturing, which is one of the sunrise sectors in India. The company's order book and earnings visibility look promising from a medium- to long-term perspective. Investors with a long-term horizon can hold on to the counter," Bathini said.

On Raymond Realty, Bathini said, "The Q1 order book is quite strong and the counter looks positive at current valuations. From a long-term perspective, investors can hold the stock and consider buying on dips."

Technical view

According to AR Ramachandran, Sebi-registered research analyst at Tips2trades, Raymond remains bullish on the daily charts but is in the overbought zone.

"Raymond is bullish but overbought on daily charts, with the next resistance at Rs 776. Investors should consider booking profits, as a daily close below the support of Rs 685 could trigger a fall towards Rs 611 in the near term," Ramachandran said.

On Raymond Realty, he said, "Raymond Realty is bullish on daily charts, with strong support at Rs 511. A daily close above the resistance of Rs 541 could lead to an upside target of Rs 593 in the near term."