Raymond, a leading Indian conglomerate, has experienced remarkable growth over the past four years. The company’s share price has skyrocketed sixfold, thanks to a series of key organizational changes. One of the most significant achievements has been the rapid expansion of Raymond’s real estate business, which has seen its revenue increase sixfold, contributing substantially to the company’s overall growth.
Additionally, Raymond’s strategic focus on cost optimization has yielded impressive results. By streamlining operations and cutting unnecessary expenses, the company managed to improve its EBITDA margin from 9% in FY20 to an impressive 14% in FY23.
The successful sale of their FMCG business to GCPL also played a pivotal role in Raymond’s growth story. This strategic move not only freed up capital but also demonstrated the company’s commitment to financial prudence.
Furthermore, Raymond is exploring the potential of a de-merger in its lifestyle business, which would create a separate entity and provide a more focused strategic direction. This move aims to further refine the company’s growth trajectory.
In a bold expansion into new promising sectors, Raymond recently acquired Maini Precision Products Ltd (MPPL), allowing them to venture into aerospace, defence, and electric vehicles. These strategic initiatives have paved the way for three distinct growth vectors: lifestyle, real estate, and engineering businesses.
Industry experts view these transformative changes positively and suggest initiating coverage with a HOLD rating, highlighting Raymond’s clear growth trajectory. The company’s newfound growth, supported by strong leadership positions and successful initiatives, indicates a promising future.
