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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence  |  Estd 2006 Corporate Strategy  |  AI Pivot & Power Infrastructure Reliance Power's AI Pivot (₹25.10): Rebranding, ₹9,000 Cr Capital, and a Policy Tailwind Arriving Right on Cue Four renamed subsidiaries. A ₹9,000 crore fundraise. And a state government simultaneously building the exact demand this pivot is betting on. On June 30, 2026, Reliance Power quietly filed one of the more consequential corporate-identity shifts in the Indian power sector this year. Four of its subsidiaries were renamed Reliance AI Green Power, Reliance AI Power, Reliance AI Data Control, and Reliance AI Data C — and the company formally added artificial intelligence and technology-enabled services to its business objects. This was not a data-centre announcement or a customer contract. It was...
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Raymond Ltd (Rs.487.05) Reborn:: The Engineering Phoenix Rising After Demerger?

~Sumon Mukhopadhyay.
------------------------------------

How is this?

Raymond Ltd has transformed into a pure-play engineering and precision manufacturing company after demerging its lifestyle and real-estate businesses. In Q2 FY26, the company reported:

  • Revenue: ₹528 crore (up 11% YoY)
  • EBITDA: ₹43 crore (up 12.6% YoY)
  • Net Profit: ₹11.4 crore (down 81% YoY due to a ₹167 crore exceptional loss)

At a CMP of about ₹487.05, Raymond trades at a very low P/E of 17.30 (distorted due to demerger effects). Street median target price is ₹846, indicating a 64% potential upside. Overall stance: accumulate on dips.

🔹Company Overview:

Founded in 1925, Raymond Ltd has shifted from textiles to engineering. Its demerged companies are:

  • Raymond Lifestyle Ltd (textiles & apparel)
  • Raymond Realty Ltd (real estate)

The core Raymond Ltd now focuses on:

  • Precision Engineering & Auto Components: ~77% revenue
  • Aerospace & Defence: ~15% revenue
  • Other industrial products: ~8% revenue

Raymond exports to 55+ countries, holds a net cash position (~₹27 crore), and has promoter holding of 48.87%. A major ₹940 crore capex plan in Andhra Pradesh is underway.

🔹Financial Performance:

Q2 FY26 Vs Q2 FY25

  • Revenue: Rs.528 Vs Rs.474 crore.
  • Total Income: Rs.564 Vs Rs.512 crore.
  • EBITDA: Rs.43 Vs Rs.38 crore.
  • EBITDA Margin: 8.2%.
  • Net Profit: Rs.11.4 Vs Rs.60 crore.
  • Exceptional Loss: ~Rs.167 crore.

H1 FY26 Vs H1 FY25:

  • Total Income: Rs.1,095 crore (up 8%).
  • EBITDA: Rs.79 crore (vs Rs 77 crore).
  • Working Capital Cycle: ~60 days.
  • Inventory Days: ~85.

🔹Ratio Analysis:

  • P/E: 17.30
  • P/B: 1.06x.
  • EV/EBITDA: 9.4x.
  • ROE: 1.3%.
  • ROCE: 2.3%.
  • Debt/Equity: 0.2x.

Intrinsic value estimates (EV/EBITDA, EV/Sales) suggest ~₹857 per share (66% upside). Peer-multiple re-rating potential remains strong.

🔹Analyst Target Prices:

Source Target Price (₹) Upside
Economic Times ₹846 +64%
Investing.com ₹903 +75%
AlphaSpread ₹921 +79%
WalletInvestor ₹598 +16%

Ideal entry: Below ₹500 for best risk–reward.

🔹Growth Drivers:

  • Aerospace & defence exports growing >20% YoY.
  • Auto & EV precision parts gaining momentum.
  • ₹940 crore AP expansion boosting long-term scalability.
  • Margin target: 10–12% for FY26.

🔹Risks:

  • Exceptional losses may continue in Q3 due to restructuring.
  • Auto/defence cyclicality.
  • Steel prices rising 5–7% QoQ.
  • Auditor resignation under SEBI review.
  • Stock down ~34% from post-demerger highs.

🔹Twitter (X) Sentiment:

  • Low but positive engagement around midcap conferences.
  • Pledge release seen as a positive.
  • Some caution on auditor resignation.
  • Sentiment mix: 60% bullish, 30% neutral, 10% cautious.

Conclusion:

Raymond Ltd has successfully repositioned itself as an engineering-focused company. Q2 FY26 showed stable revenue and EBITDA performance, with exceptional losses masking underlying strength. With strong capex, clean balance sheet, and improving demand across auto and defence, the stock remains attractive for medium-term investors.

View: Accumulate on dips.

Next triggers: Q3 FY26 results and AP capex progress.

==============================

Disclaimer: This report is for informational purposes only and based on publicly available data as of 24 November 2025. It is not investment advice. Markets involve risk. Please conduct your own research and consult a SEBI-registered advisor before investing.

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