Recent Price Movement and Market Context
On 20 Jan 2026, Raymond Ltd’s stock closed at Rs.386.4, down 0.90% on the day, aligning with sector performance. This new low represents a sharp contrast to its 52-week high of Rs.782, indicating a decline of approximately 50.6% over the past year. The stock has fallen by 3.73% over the last three trading days, underscoring a sustained negative momentum.
Technical indicators reveal that Raymond is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness suggests a lack of short- and long-term buying interest. Meanwhile, the benchmark Sensex also experienced a decline, falling 0.51% to 82,823.56 after a flat opening. The Sensex is currently 4.03% below its own 52-week high of 86,159.02 and has recorded a three-week consecutive fall, losing 3.43% in that period.
Financial Performance and Growth Trends
Raymond Ltd’s financial metrics have contributed to the subdued market sentiment. The company’s net sales have contracted at an annualised rate of -12.30% over the last five years, reflecting challenges in sustaining revenue growth. Profit after tax (PAT) for the nine months ended recently stood at Rs.1,673.93 crore, declining by 21.01% compared to the previous period. Concurrently, interest expenses have increased by 20.43% to Rs.57.54 crore, exerting additional pressure on profitability.
The operating profit to interest coverage ratio has dropped to a low of 2.01 times in the latest quarter, indicating tighter margins and reduced cushion to service debt obligations. These financial headwinds have been reflected in the company’s recent quarterly results, which have been negative for three consecutive quarters.
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Institutional Holding and Market Sentiment
Institutional investors have reduced their stake in Raymond Ltd by 1.45% over the previous quarter, now collectively holding 17.14% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources. The stock’s Mojo Score currently stands at 38.0, with a Mojo Grade of Sell, downgraded from Hold on 29 Oct 2025, signalling a cautious stance from the rating agency.
Over the past year, Raymond Ltd has underperformed the broader market significantly. While the Sensex posted a positive return of 7.46%, Raymond’s stock declined by 31.88%. This underperformance extends over the last three years, with the stock lagging behind the BSE500 index in each annual period.
Valuation and Efficiency Metrics
Despite the challenges, Raymond Ltd exhibits strong management efficiency, with a return on equity (ROE) of 35.83%. The company’s price-to-book value ratio stands at a modest 0.8, indicating that the stock is trading at a discount relative to its peers’ historical valuations. Additionally, the company’s ROE of 51.9 is considered very attractive, suggesting effective utilisation of shareholder capital.
However, the price-to-earnings-to-growth (PEG) ratio is reported as zero, reflecting the combination of declining profits and stock price. Over the past year, profits have fallen by 23.8%, further contributing to the subdued valuation.
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Summary of Key Metrics
To summarise, Raymond Ltd’s stock has reached a new 52-week low of Rs.386.4, reflecting a sustained decline over the past year and recent sessions. The company’s financial performance has been marked by shrinking sales, declining profits, and rising interest costs. Institutional investors have trimmed their holdings, and the stock’s technical indicators remain weak across all major moving averages.
While the company maintains a strong ROE and trades at a discount to book value, these factors have not been sufficient to offset the broader negative trends impacting the stock price. The Realty sector’s current environment and the company’s recent results have contributed to the cautious market stance.
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