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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence  |  sumanspeaks.blogspot.com Travel & Hospitality · Turnaround Watch Easy Trip Planners At ₹5.78: The Hotel Business Is Growing Faster Than The Old Business Is Shrinking Near its 52-week low, EaseMyTrip is quietly turning into a different company than the one that listed in 2021 — and the next few quarters will decide whether that transformation shows up in the profit line. Easy Trip Planners Ltd trades around ₹5.78, with a market capitalisation of approximately ₹2,300 crore. That is close to its 52-week low of ₹5.74. At first glance, that looks like a stock the market has simply given up on. Look closer, and a more interesting picture emerges. The balance sheet is clean. Revenue is still growing. And one part of the business — hotels and holiday packa...
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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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