Tuesday’s trading saw shares of Raymond soar 9.85% to $2,172 per share, which was the largest intraday rise since December 2022. During the day, the stock also set a new record high of $2,240. The positive outlook for the company caused this significant increase in the stock.
In a recent research note, brokerage house Motilal Oswal commenced coverage on the stock with a ‘buy’ rating and a target price of $2,600 per share. The stock was also given coverage by Jefferies, who set a “buy” call with a target price of $2,600 per share.
With operations in real estate, tools & hardware, auto components, and garment production for international brands, Raymond is a prominent brand in textiles and clothing in India.
According to Motilal Oswal, the company has announced three crucial initiatives to restructure the group and strengthen the promoter’s focus on the business.
First, the corporation sold to GCPL its FMCG division, which was run by Raymond Consumer Care Ltd (RCCL), in an all-cash deal worth 28 billion pounds. Second, it declared that its lifestyle business would be hived off into RCCL. With this tactical separation, the consumer clothes category was to be set off from other industries like engineering and real estate.
