Raymond (RAYMOND)

FairStock Score: 37/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Trades below book value: P/B 0.89 against book value ₹500.58
• Debt/Equity is low at 0.29, giving balance sheet room
• Piotroski F-Score of 7/9 indicates decent financial health
• Promoter holding of 48.87% aligns interests with minority shareholders
• Reported sales growth of 19.54% and PEG of 0.28 highlight potential operating momentum

Concerns

• Core return on capital employed is only 1.64%, showing poor operating profitability
• Earnings quality is questionable: latest quarter net profit is just ₹7 Cr on ₹557 Cr sales, despite P/E implying ~₹190 Cr annual profit
• ROE of 168% is inconsistent with the 0.89 P/B and likely distorted by one-off or accounting items
• Zero dividend yield means investors get no compensation while waiting for asset value to unlock
• Price is down sharply from the 52-week high of ₹679, and FairStock Score is only 44/100

AI Analysis

Let me start with what attracts me: Raymond trades at ₹443.80 against a stated book value of ₹500.58, so I am paying 89 paise for each rupee of net assets. Debt/equity is a manageable 0.29, and a Piotroski F-Score of 7/9 suggests the balance sheet is not deteriorating. Promoter holding of 48.87% also aligns ownership with my interest. But I must be honest with myself. The reported ROE of 168% and profit growth of 81.34% look suspicious when the latest quarter made only ₹7 Cr on sales of ₹557 Cr. The P/E of 14.07 and market cap of ₹2,668 Cr imply annual earnings of around ₹190 Cr, yet the core business generates just 1.64% ROCE. That gap tells me reported profits may contain one-time gains such as land sales or re-measurements, not dependable operating earnings. Graham taught me to value a business on ordinary earning power, not on a burst of activity. With zero dividend yield, I receive no income while waiting. The 52-week range of ₹320 to ₹679 shows the stock has fallen sharply from its high, and the FairStock Score of 44/100 is mixed. This is not a wonderful compounder; it is an asset-backed situation. My margin of safety rests on whether book value is real and can be realized or productively redeployed. Until operating returns improve convincingly and earnings become repeatable, I cannot call this a high-quality long-term holding.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer