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Raymond Ltd

NSE: RAYMOND BSE: 500330

398.25

(-1.25%)

Fri, 13 Feb 2026, 03:45 pm

Raymond Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (18x coverage).
  • Raymond's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividend payments have increased, but Raymond only paid a dividend in the past 9 years.
  • Raymond has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Raymond's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Raymond's revenue growth is expected to exceed the India market average.
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Cons

  • Raymond's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Raymond's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Raymond's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
  • Raymond's earnings are expected to decrease over the next year.
  • Raymond's revenue is expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Raymond is profitable, therefore cash runway is not a concern.
  • Raymond is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 1.9x debt.
  • Raymond's cash and other short term assets cover its long term commitments.
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Cons

  • Raymond's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not well covered by operating cash flow (16.8%, less than 20% of total debt).
  • The level of debt compared to net worth has increased over the past 5 years (114.2% vs 124.7% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
  • Raymond's level of debt (124.7%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • Gautam's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The average tenure for the Raymond management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • The average tenure for the Raymond board of directors is less than 3 years, this suggests a new board.
  • Gautam's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Raymond is covered by less than 3 analysts.
    • Raymond has significant price volatility in the past 3 months.

    past

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    Pros

    • Raymond's 1-year earnings growth exceeds its 5-year average (116.1% vs 22.7%)
    • Raymond has delivered over 20% year on year earnings growth in the past 5 years.
    • Raymond used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
    • Raymond has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Raymond's earnings growth has exceeded the IN Luxury industry average in the past year (116.1% vs 8.3%).
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    Cons

    • Raymond has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • Raymond is good value based on earnings compared to the IN Luxury industry average.
    • Raymond is good value based on earnings compared to the India market.
    • NSEI:RAYMOND is up 25.7% outperforming the Luxury industry which returned 9.8% over the past month.
    • NSEI:RAYMOND is up 25.7% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Raymond's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Raymond's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Raymond is overvalued based on assets compared to the IN Luxury industry average.
    • Raymond earnings are not expected to grow next year, we can't assess if its growth is good value.
    • RAYMOND underperformed the Luxury industry which returned -22.1% over the past year.
    • RAYMOND underperformed the Market in India which returned -14.5% over the past year.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800