Raymond Ltd Stock Falls to 52-Week Low of Rs.380.75 Amid Continued Underperformance

Stock Price Movement and Market Context

On 21 Jan 2026, Raymond Ltd’s share price touched Rs.380.75, the lowest level in the past year, following three consecutive days of declines. Despite this, the stock managed a slight rebound today, outperforming its sector by 2.27%. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.

The broader market environment has been challenging, with the Sensex opening 385.82 points lower and closing down by 241.27 points at 81,553.38, a 0.76% decline. The Sensex is currently trading below its 50-day moving average, although the 50DMA remains above the 200DMA. This marks the Sensex’s third consecutive week of losses, with a cumulative decline of 4.91% over this period.

Within the sector, the textile industry, to which Raymond Ltd is closely related, has also experienced a downturn, falling by 2.2%. This sectoral weakness compounds the pressures on Raymond’s stock price.

Financial Performance and Growth Trends

Raymond Ltd’s financial metrics reveal a challenging growth trajectory. Over the last five years, net sales have contracted at an annualised rate of -12.30%, indicating a persistent decline in top-line performance. The company has reported negative results for the last three consecutive quarters, with profit after tax (PAT) for the first nine months standing at Rs.1,673.93 crore, reflecting a decline of 21.01% compared to previous periods.

Interest expenses have increased by 20.43% over the same nine-month period, reaching Rs.57.54 crore. This rise in interest costs has adversely affected the company’s operating profit to interest coverage ratio, which currently stands at a low 2.01 times, highlighting tighter financial flexibility.

Institutional Investor Activity and Market Sentiment

Institutional participation in Raymond Ltd has diminished, with a reduction of 1.45% in their stake over the previous quarter. Currently, institutional investors hold 17.14% of the company’s shares. Given their analytical resources and market insight, this decline in institutional holding may reflect cautious sentiment regarding the company’s fundamentals.

Raymond Ltd’s stock has consistently underperformed its benchmark indices over the past three years. The stock’s one-year return stands at -32.15%, significantly lagging behind the Sensex’s positive 7.50% return over the same period. Furthermore, the stock has underperformed the BSE500 index in each of the last three annual periods, underscoring ongoing challenges in delivering shareholder value.

Valuation and Efficiency Metrics

Despite the subdued price performance, Raymond Ltd exhibits strong management efficiency, reflected in a high return on equity (ROE) of 35.83%. The company’s valuation metrics also indicate an attractive price-to-book (P/B) ratio of 0.8, which is below the average historical valuations of its peers. This suggests that the stock is trading at a discount relative to comparable companies within the sector.

However, the company’s profitability has declined by 23.8% over the past year, and the PEG ratio remains at zero, indicating a lack of earnings growth relative to its price. These factors contribute to the cautious outlook reflected in the current Mojo Score of 38.0 and a Mojo Grade of Sell, downgraded from Hold on 29 Oct 2025.

Summary of Key Metrics

Raymond Ltd’s current market capitalisation grade stands at 3, reflecting its mid-cap status within the Realty sector. The stock’s 52-week high was Rs.782, illustrating the extent of the recent decline to Rs.380.75. The day’s price change was a modest -0.40%, yet the stock’s overall trend remains downward.

The company’s financial health is marked by a combination of declining sales, reduced profitability, and rising interest expenses. While management efficiency remains commendable, the broader financial indicators and market performance suggest ongoing pressures.

Raymond Ltd’s stock continues to trade at a discount relative to its peers, but the persistent negative earnings growth and institutional selling highlight the challenges faced by the company in reversing its recent downtrend.

Conclusion

The fresh 52-week low of Rs.380.75 for Raymond Ltd underscores the sustained difficulties confronting the company amid a challenging market and sector environment. The combination of declining sales, negative quarterly results, increased interest costs, and reduced institutional participation has contributed to the stock’s underperformance relative to benchmarks. While valuation metrics indicate a discount, the overall financial and market data reflect a cautious stance on the stock’s near-term trajectory.

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