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Raymond Stock Surges as Aerospace Business Drives Investor Optimism
Raymond is a company whose share price rose sharply while the wider market fell.
Its lifestyle and real estate businesses have been separated into independent listed companies.
The remaining company is concentrating on engineering businesses, including aerospace and defence.
Its aerospace revenue grew strongly in the latest quarter.
The company also has aerospace orders worth more than ₹5,960 crore spread over 10 years.
It supplies parts to aerospace customers and has agreements involving Safran Aircraft Engines and Pratt & Whitney.
Raymond’s defence business is moving from testing and qualification toward commercial production.
The company also plans to raise ₹214.71 crore by issuing convertible warrants.
One analyst remains positive but said buyers may want to wait for the price to settle or fall.
Raymond shares climbed nearly 20% to an intraday high of ₹1,024 on Friday, 11 September, despite declines in the Sensex and Nifty 50.
The rally followed the demerger of Raymond’s lifestyle and real estate businesses, leaving the company focused on aerospace and defence and precision technology and auto components.
Raymond’s Aerospace & Defence revenue rose 40.4% year-on-year to ₹123 crore in Q1 FY27, while EBITDA increased 25.4% to ₹26 crore.
The aerospace business has an order book exceeding ₹5,960 crore over a 10-year horizon, alongside a ₹1,632 crore request-for-quotation pipeline.
Raymond approved a ₹214.71 crore preferential warrant issue, while an analyst described the trend as positive but advised waiting for consolidation or a price dip before fresh buying.
- Who
- Raymond Limited, its Aerospace & Defence business, and investors; analyst Rajesh Bhosale also commented on the stock.
- What
- Raymond shares surged nearly 20% as investors responded to its business demerger, aerospace growth, order book, defence progress, and fundraising plan.
- Where
- The shares traded on the Bombay Stock Exchange, while the company’s aerospace and defence operations are described in its exchange filings and presentation.
- When
- Friday, 11 September; the company’s reported results relate to Q1 FY27.
- Why
- The rally followed Raymond’s post-demerger focus on engineering businesses, strong aerospace growth, a large order book, defence production progress, and the announced fundraising plan.
Bullish View
Cautious View
Aerospace growth and visibility
Bullish View
Raymond’s aerospace revenue grew 40.4%, its order book exceeds ₹5,960 crore, and agreements with Safran Aircraft Engines and Pratt & Whitney could support longer-term growth.
Cautious View
The articles do not disclose the value of the Safran or Pratt & Whitney arrangements, and the company is still progressing parts of its defence business toward commercial production.
Share-price outlook
Bullish View
The stock broke above previous resistance, gained more than 50% in a month, and showed follow-up buying supported by strong volumes.
Cautious View
Rajesh Bhosale said the stock had moved significantly above its short-term moving averages and recommended waiting for consolidation or a price dip before fresh buying.
Fundraising plan
Bullish View
The proposed ₹214.71 crore warrant issue could provide additional capital for the company’s plans, subject to approvals.
Cautious View
The issue remains subject to shareholder approval and regulatory clearances, and unconverted warrants will lapse after 18 months.
Key facts
- Intraday high
- ₹1,024 per share
- Q1 FY27 aerospace revenue
- ₹123 crore, up 40.4% year-on-year
- Q1 FY27 aerospace EBITDA
- ₹26 crore, up 25.4%; margin was 21.2%
- Aerospace order book
- More than ₹5,960 crore across a 10-year contract horizon
- Request-for-quotation pipeline
- ₹1,632 crore
- Fundraising plan
- ₹214.71 crore through 33.28 lakh convertible warrants
- Technical view
- Support near ₹900 and next resistance at ₹1,150, according to Rajesh Bhosale
Quotes
Rajesh Bhosale
Technical Analyst at My Advisor Alpha
“For fresh buying, some consolidation or a price dip is advisable. Support is seen around the ₹900 mark, while ₹1,150 is the next resistance.”
livemint.com
Sources
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