Raymond Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Raymond Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new positions at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s potential risk and reward profile.

Quality Assessment

As of 28 February 2026, Raymond Ltd holds a 'good' quality grade. This reflects the company’s operational and business fundamentals, including its product offerings and market position within the realty sector. Despite this, the company’s long-term growth has been disappointing, with net sales declining at an annualised rate of -8.40% over the past five years. This negative growth trend raises concerns about the company’s ability to expand its revenue base sustainably.

Valuation Perspective

The valuation grade for Raymond Ltd is classified as 'very attractive' as of today. This suggests that the stock is trading at a price level that may offer value relative to its earnings and asset base. Investors looking for bargains might find this appealing, especially given the stock’s depressed price levels following recent underperformance. However, attractive valuation alone does not guarantee positive returns if other fundamentals remain weak.

Financial Trend Analysis

The financial trend for Raymond Ltd is currently 'flat', indicating a lack of significant improvement or deterioration in key financial metrics. The company reported flat results in the December 2025 quarter, with earnings per share (EPS) at a low Rs 0.54. Notably, non-operating income accounted for 95.60% of profit before tax (PBT), signalling that core business profitability remains under pressure. Additionally, interest expenses for the nine months ended December 2025 rose by 21.96% to Rs 60.64 crore, which could weigh on future earnings.

Technical Outlook

From a technical standpoint, Raymond Ltd is rated 'bearish'. The stock has underperformed key benchmarks such as the BSE500 over the last three years, one year, and three months. Recent price movements show a 1-day decline of -1.36%, a modest 1-month gain of +3.27%, but a significant 6-month loss of -35.55%. Year-to-date, the stock is down by -6.37%, and over the past year, it has delivered a negative return of -17.50%. These trends suggest weak investor sentiment and limited momentum for a near-term recovery.

Investor Participation and Market Sentiment

Institutional investor participation has also declined, with a reduction of -2.7% in their stake over the previous quarter, leaving them with a collective holding of 14.44%. Given that institutional investors typically possess greater analytical resources and market insight, their reduced involvement may reflect concerns about the company’s prospects. This diminished confidence can further pressure the stock’s performance.

Summary of Current Position

In summary, Raymond Ltd’s 'Sell' rating is supported by a combination of factors: a good but challenged quality profile, very attractive valuation, flat financial trends, and bearish technical indicators. The stock’s poor long-term growth, flat recent earnings, rising interest costs, and declining institutional interest all contribute to a cautious outlook. While the valuation may entice value-focused investors, the overall risk profile suggests prudence.

Implications for Investors

For investors, the 'Sell' rating implies that Raymond Ltd may not currently offer favourable risk-adjusted returns. The stock’s recent underperformance and weak financial trends suggest that holding or accumulating shares could expose investors to further downside. Those with existing positions might consider reassessing their exposure, particularly in light of the bearish technical signals and declining institutional interest.

Looking Ahead

While the valuation remains attractive, a turnaround in Raymond Ltd’s fundamentals and technical outlook would be necessary to justify a more positive rating. Investors should monitor upcoming quarterly results, changes in sales growth trajectory, and any shifts in institutional holdings. Improvements in core profitability and a stabilisation of financial trends could alter the current cautious stance.

Conclusion

Raymond Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 16 February 2026, reflects a comprehensive assessment of the company’s quality, valuation, financial trend, and technical outlook as of 28 February 2026. The stock’s challenges in growth, earnings quality, and market sentiment underpin this recommendation, signalling that investors should exercise caution and closely monitor developments before considering new investments.

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