Raymond Realty (RAYMONDREL)

FairStock Score: 63/100 — STEADY

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

Key Financials

Strengths

• ROCE of 16.38% shows good capital efficiency
• Debt-to-equity of 0.42 indicates moderate leverage, not overstretched
• Piotroski F-Score of 7/9 suggests solid financial fundamentals
• Latest quarter sales of ₹758 Cr and net profit of ₹67 Cr demonstrate meaningful scale

Concerns

• Sales growth of 721% and profit growth of 1000% are unsustainable from a low base and typical of real estate project recognition
• P/E of 19.19 is not compelling for a cyclical business with volatile earnings
• No dividend yield means investors depend solely on price appreciation
• Promoter holding of 49.02% is moderate; better alignment would require a higher stake

AI Analysis

Raymond Realty's numbers grab your attention. Sales up 721% and profits up 1000% are eye-popping, but as Graham taught, I must dig deeper. The latest quarter shows sales of ₹758 Cr and net profit of ₹67 Cr, giving a P/E of 19.19. That is not cheap for a real estate firm, where earnings are notoriously lumpy. A 1000% profit increase often means a low base or a one-time project completion, not a repeatable business trajectory. The company earns a ROCE of 16.38%, which is respectable, and debt-to-equity of 0.42 is manageable. The Piotroski F-Score of 7/9 suggests decent financial health. But with book value of ₹201.66 and price at ₹464.90, you are paying 2.31 times book for growth that may not persist. The 52-week range of ₹349 to ₹734.50 tells me this is a volatile cyclical, not a steady compounder. There is no dividend, so my return depends entirely on capital appreciation, which is speculative. Promoter holding at 49.02% is adequate but not dominant. The PEG ratio of 0.02 is absurdly low because trailing growth is 1000%; I would ignore that metric for cyclicals. In true Buffett fashion, I prefer businesses with a durable moat and predictable cash flows. Real estate in India is project-based, and each project carries execution and demand risk. With a FairStock score of only 64, this is a 'steady' business but not a wonderful one. At the right price, there may be value, but at ₹464.90, I see no margin of safety. I would wait for a better price or evidence that this growth is sustainable across multiple cycles.

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