Tag Investing

Raymond Ltd
Raymond Ltd Plunges to 52-Week Low: Market Challenges & Future Growth Plans

Business and Industry Overview: 

Raymond Ltd is a well-known Indian company that makes fabrics and clothes. It is the largest fabric maker in the world. The company started in 1925 as a small woolen mill near Mumbai. Later, the Singhania family took over and made it a big brand. Today, it is one of the top textile and fashion companies in India. 

Raymond sells suiting fabrics all over India. It has 30,000 retailers and more than 600 exclusive stores. The company also exports to 55 countries, including the US, Canada, Europe, and Japan. It is India’s biggest woolen fabric maker and controls 60% of the suiting market. Raymond has over 20,000 fabric designs and colors, which is the largest collection by one company. 

Raymond also makes ready-made clothes. It owns brands like Park Avenue, ColorPlus, and Parx. The company is also involved in real estate and engineering. Over the years, it has built a strong name in the market. In 2015, it was named India’s most trusted apparel brand. Even with competition, Raymond remains a leader in the fashion and textile industry. 

The textile and clothing industry is one of the biggest in the world. It includes making fabrics, designing clothes, and selling them. Many people work in this industry, from farmers growing cotton to workers stitching clothes in factories. India is a major producer of textiles like cotton, wool, silk, and synthetic fabrics. In April-June 2025, India exported $2,244 million worth of ready-made clothes. The country’s cotton production is expected to reach 7.2 million tonnes by 2030 due to growing demand. The Indian textile market is growing fast and may reach $350 billion by 2030, with exports of $100 billion. In April-January 2024, India exported $28.72 billion worth of textiles, clothes, and handicrafts. India is a preferred choice for textile production because of low costs and skilled workers. The government is helping the industry by allowing 100% foreign investment and launching schemes like PLI worth $1.44 billion for fabric and technical textiles. A 12% tax rate has been fixed for some fabrics to make business easier. The government is also training workers, with over 1.8 lakh people trained under Samarth. It has approved $7.4 million for research and $109.99 million for upgrading machines in factories. Foreign investment in textiles has reached $4.47 billion since 2000. The government also plans to create 75 textile hubs to boost business. With strong demand, government support, and more investment, India’s textile industry will continue to grow. 

Raymond Ltd is a famous company in India’s clothing and fabric industry. It is the largest fabric maker in the world and has a 60% share in India’s suiting market. It is also India’s biggest woolen fabric producer. The company has a large network of shops. It sells products in over 4,000 multi-brand stores and 637 Raymond showrooms. Its fabrics and clothes are available in 30,000 shops across 400 towns in India. Raymond also sells its products in 55 countries, including the US, Canada, Europe, Japan, and the Middle East. 

Raymond makes different types of products. It sells fabric, ready-made clothes, grooming products, and home textiles. It owns brands like Park Avenue, ColorPlus, and Parx. Raymond competes with Vardhman, Arvind, Siyaram, and Aditya Birla Fashion. But people trust Raymond more because of its good quality, strong brand, and large store network. The company has over 20,000 fabric designs and colors, making it one of the largest collections in the world. 

Raymond has modern factories in Maharashtra and Gujarat. These factories use advanced technology to make high-quality fabrics at lower costs. The company is always creating new styles and fabrics to stay ahead in fashion. In 2015, it was named India’s most trusted clothing brand. 

Raymond is growing fast. It is opening new stores, launching new products, and selling more in foreign markets. More people are buying premium fabrics and clothing, and the government is helping the textile industry grow. With its strong brand, good quality, and large store network, Raymond will continue to grow and remain a top company. 

Latest Stock News: 

Raymond Ltd, a mid-sized textile company, has hit a new 52-week low after five days of losses, even though the textile sector has done slightly better. The stock has dropped a lot in the past year, which raises concerns about the company’s financial health and future growth. But, it still has a strong return on equity. 

Today, 1.34 lakh shares of Raymond traded on the BSE, which is much higher than its usual 25,000 shares over the past two weeks. The total turnover was ₹18.44 crore, and the company’s market value is ₹9,472.78 crore. There were 14,733 buy orders compared to 14,460 sell orders. 

Some analysts think the stock is bullish in the short term, while others believe it has a good risk-reward balance. They think ₹1,220 and ₹1,320 are key support levels, and ₹1,440 to ₹1,600 are resistance levels. If the stock stays above ₹1,440, it might go up to ₹1,600. But, if it drops below ₹1,320, it could weaken the stock’s rise. 

Technically, Raymond’s stock is above its short-term moving averages (5-day, 10-day, 20-day, and 30-day) but below its long-term averages (50-day, 100-day, 150-day, and 200-day). The Relative Strength Index (RSI) is at 56.75, showing it is neither overbought nor oversold. 

The company has a low P/E ratio of 1.04 and a P/B ratio of 2.96, with Earnings Per Share (EPS) of ₹1,368.94. Raymond’s Return on Equity (RoE) is very high at 283.97%. The stock has a beta of 1.3, meaning it can be volatile. 

As of December 2024, the promoters own 48.87% of the company. 

Potentials: 

Raymond Ltd has big plans for the future. The company wants to list its apparel and real estate businesses by 2025. This will help raise the value for people who own shares in the company. Raymond also wants to break up its current structure, which has caused the stock price to be lower than expected. Raymond Lifestyle, which is known for its men’s suits, plans to grow in the Indian market and in the wedding wear market. The company wants to open more stores and grow quickly in these areas. 

Raymond also plans to expand into other countries and increase its number of stores in India. It will keep making new products and better fabric designs to meet what customers want. The company will also open more Raymond showrooms in different cities. 

Raymond wants to sell more online, as more people are shopping on the internet now. The company will work on improving its factories so that it can reduce costs and keep the quality high. Raymond also cares about the environment and will use greener technologies to make the production process cleaner and more eco-friendly. 

Raymond wants to make its supply chain better and take more market share to stay ahead of its competition. The company may also look for new partnerships or buy other companies to keep growing. All these plans should help Raymond become a stronger and more valuable company in the future. 

Analyst Insights: 

  • Market capitalisation: ₹ 9,428 Cr. 
  • Current Price:₹ 1,413  
  • 52-Week High/Low:₹ 2,381 / 1,050 
  • Stock P/E: 29.6 
  • Dividend Yield: 0.71 % 
  • Return on Capital Employed (ROCE): 30.9 % 
  • Return on Equity: 44.5 % 

Raymond Ltd has been doing well financially. Its profit has grown by 57.8% each year over the last 5 years. The company’s return on equity (ROE) is 44.5%, which is a good sign. It has also reduced its debt. In FY23, its revenue went up to ₹8,215 crores, and its profit reached ₹537 crores. The company has also split off its lifestyle business, which could help it grow even more. The stock’s price-to-earnings (PE) ratio of 29.6 is lower compared to other companies in the same sector, which makes it a good investment opportunity. I recommend buying the stock, with a target price of ₹1,650-₹1,700 in the next year. 

Elgi Equipments Ltd
Elgi Equipments Ltd Leads Gainers in ‘A’ Group with Strong Market Performance

Business and Industry Overview: 

Elgi Equipments Ltd is an Indian company that makes air compressors. These machines provide pressurized air for different industries. Factories, hospitals, garages, and construction sites use them to run machines, power tools, and perform important tasks. The company started in 1960 in Coimbatore, Tamil Nadu. Today, it is a global leader in air compressors and sells products in more than 120 countries. It has a large range of over 400 products for different needs. 

Elgi makes different types of air compressors. Reciprocating compressors are used for small jobs like workshops. Rotary screw compressors are used in big industries. Oil-free compressors are used in hospitals and food factories where clean air is important. The company also makes centrifugal compressors, dryers, filters, vacuum solutions, and accessories that help air compressors work better and last longer. 

Elgi is known for its high quality, new technology, and strong customer support. It focuses on energy-saving and cost-effective machines that help businesses reduce costs and increase efficiency. The company follows seven core values: innovation, quality, speed, collaboration, integrity, cost management, and sensitivity to customer needs. 

Elgi also helps society by supporting education and skill training. It runs the ELGi School in Coimbatore, which educates 1,400 underprivileged students. The company also has training programs for young people from villages to help them get jobs in manufacturing. 

Elgi cares about the environment. It makes oil-free and energy-efficient compressors to reduce pollution and save energy. It also turns its factories and offices into green spaces to help the planet. 

Elgi’s goal is to become the top air compressor company in the world. Its vision is clear: “Always be the choice everywhere.” 

The air compressor industry is growing fast because many businesses need compressed air. Air compressors are used to run machines, power tools, fill gas cylinders, and pack food. They are important for factories, hospitals, farms, garages, and construction sites. In India, this market will reach $995 million by 2030 and grow 5.2% yearly. More factories, LPG production, air conditioners, and packaged food are increasing demand. 

Air compressors help in many ways. They are used for vacuum sealing food, spray painting, breaking roads, farming, and medical tools. Many big companies making s like Atlas Copco, Ingersoll Ran, Kirloskar, ELGi Equipments, and Hitachi make air compressors. Portable, compressors are popular because they are easy to carry and save power. New smart compressors use sensors to save energy and reduce maintenance costs. Some companies, like Atlas Copco, make eco-friendly compressors that run on electricity instead of diesel to reduce pollution. 

The industry has some problems like high electricity costs, strict pollution rules, and strong competition. But with better technology and energy-saving designs, the market will keep growing as industries expand. 

ELGi Equipments makes air compressors. It has been in business for over 64 years. The company sells its products in 120+ countries. It competes with big brands like Atlas Copco and Ingersoll Rand. ELGi makes strong, energy-saving, and affordable compressors. It offers different types of compressors, like oil-free, oil-lubricated, rotary screw, and centrifugal compressors. ELGi focuses on new technology and eco-friendly products. It helps industries save money and energy. The company has a good service network to help customers quickly. It is expanding in North America, Europe, and other countries. ELGi wants to grow by making better compressors and increasing production. Even with competition, people trust ELGi because of its good quality and customer service. 

Latest Stock News: 

Elgi Equipments Ltd’s stock saw a strong rise in price and trading volume. The stock jumped over 15% to ₹512.05 per share due to high investor interest. At 11:48 AM, it was up 7.76% to ₹478.35, making it the top gainer in the BSE ‘A’ group. On BSE, around 1.38 lakh shares were traded, which is much higher than the average daily trading of 14,446 shares in the past month. This shows a big increase in buying activity. 

On NSE, the stock saw an even bigger surge in trading volume. By 2:14 PM, about 87.9 lakh shares were traded. This is a massive 19.82 times, a massive 19.82-fold jump from 4.43 lakh shares. The sharp rise in price and volume suggests strong demand from investors, possibly due to positive news, strong financial performance, or market optimism about the company’s future growth. 

Potentials:

Elgi Equipments wants to grow and sell its air compressors in more countries. The company will make better and energy-saving compressors. These machines will help save electricity and reduce costs. More businesses will use oil-free compressors because they cause less pollution and follow government rules. 

In 2025, ELGi will launch a new system called STABILISOR. This will help compressors run smoothly, use less energy, and save money. The company will also make new and improved compressors that help businesses work better and spend less. 

Elgi Equipments wants to be a top company in making air compressors. It will focus on making strong, smart, and eco-friendly machines. The company will continue to create new products that help industries work faster, save money, and protect the environment. 

Analyst Insights: 

  • Market capitalisation: ₹ 16,078 Cr. 
  • Current Price: ₹ 507 
  • 52-Week High/Low: ₹ 799 / 412 
  • Stock P/E: 49.6 
  • Dividend Yield: 0.40 % 
  • Return on Capital Employed (ROCE): 22.3 % 
  • Return on Equity: 20.6 % 

Elgi Equipments Ltd has shown steady growth, with revenue increasing from ₹1,125 Cr in FY13 to ₹3,218 Cr in FY24, growing at 9% CAGR over 10 years and 19% CAGR in the last three years. Profits have also surged, rising at 21% CAGR over 10 years and 44% CAGR in the past three years, reflecting strong business expansion. The company is debt-free, has a healthy ROCE of 22.3% and ROE of 20.6%, and offers a 19.3% dividend payout, making it a stable investment. However, the stock’s P/E ratio of 49.6x is high compared to Ingersoll-Rand (41.85x) and Kirloskar Pneumatic (37.69x), making it expensive. Also, profit declined by 20% in the latest TTM period, raising short-term concerns. While the company has strong fundamentals, the valuation is stretched. We recommend holding the stock for now but buying if it dips to ₹450 for a better entry point. 

Castrol India Ltd
Castrol India Shares Surge 11% on Reports of Saudi Aramco’s Interest in BP’s Lubricant Business

Business and Industry Overview: 

Castrol India Ltd. makes engine oils and lubricants for cars, bikes, trucks, and machines. It is one of the top companies in this business. It is a part of BP (British Petroleum), a big international energy company. Castrol India has a strong brand name and many customers. 

The company sells its products through dealers, workshops, and online stores. It has a large network across India. Many vehicle owners and businesses trust Castrol for its good-quality products. 

The company is doing well financially. It earns good profits and does not have much debt. This makes it a strong and stable company. Its sales and revenue have been increasing. 

But there are some challenges. Many new brands are entering the market. Also, more people are moving to electric vehicles (EVs), which do not need engine oil. This can reduce demand for Castrol’s products in the future. 

To deal with this, Castrol is creating new products and working with EV companies. It is also finding new ways to grow and stay ahead in the market. 

Castrol India is a big and trusted company. It has strong financials and a good market position. However, it needs to adapt to changes to keep growing in the future. 

The lubricant industry in India is big and growing. It includes oils and greases used in cars, bikes, trucks, and machines. As more vehicles and factories come up, the demand for lubricants increases. Castrol India is the second-largest player in this market. It holds about 20% of the total market share. The industry is changing as new oils like synthetic and eco-friendly ones become popular. Many companies are working on better and more advanced oils. But electric vehicles (EVs) may lower the demand for engine oil in the future. EVs do not need engine oil like petrol and diesel vehicles. This can affect lubricant companies later. The prices of crude oil and other materials keep going up and down. This impacts costs and profits. To stay ahead, companies must focus on good-quality and advanced oils. Lubricants used in machines and factories will still be in high demand. Many brands are teaming up with car and bike makers to create special oils. The market will keep changing with new rules and technology. Companies need to improve and adjust to grow in this business. Castrol India is a big player in the industry, and it has around 20% of the market share in the Indian market.  

Latest Stock News: 

Castrol India’s stock price has increased by nearly 30% in FY25. It went up from₹186 to₹239 per share. Many reasons have contributed to this rise. One big reason is the news that Saudi Aramco might buy BP’s lubricant business. Castrol India is part of BP’s lubricant business. If this deal happens, Castrol India could see big benefits. Investors are hopeful, and this has pushed the stock price up. 

The company’s financials are strong. In Q3 FY25, Castrol India’s net profit increased by 12% to ₹2.7 billion. Revenue also grew by 7.1% to ₹13.5 billion. This shows that the company is growing steadily. Crude oil prices have remained stable. This has helped Castrol India maintain good profit margins. Lower oil prices mean lower costs for the company. This helps improve earnings. 

The company has also given good dividends. In FY25, Castrol India declared a total dividend of ₹13 per share. This includes₹3.50 as an interim dividend and a final dividend. The dividend yield is around 7%. This is higher than the interest rates given by most banks. Many investors prefer stocks with high dividend payouts. This makes Castrol India a good option for them. 

The stock price also crossed an important technical level of ₹220. Experts believe that if it moves above ₹242, the price could go up to ₹295. Investors are watching closely. Castrol India benefits from the increasing number of vehicles in India. More vehicles mean more demand for lubricants. This helps the company grow. 

One risk is the rise of electric vehicles. EVs do not need as much lubricant as regular vehicles. But EV adoption is happening slowly. This gives Castrol India time to adjust and find new opportunities. The company has strong financial health. It has no debt. Its return on equity (ROE) is 43.8%. Its return on capital employed (ROCE) is even higher at 59.5%. This shows that the company uses its money well. 

Over the past five years, Castrol India’s revenue has grown at a 7% annual rate. The company has a strong history of profitability. It also has a good dividend policy. On average, it gives 82% of its profit as dividends to shareholders. The management plans to continue this policy. 

Overall, Castrol India is a well-performing company. It has strong profits, steady growth, and a high dividend yield. It benefits from India’s growing automobile sector. The stock price has been rising due to strong financials and the possible Saudi Aramco deal. Investors are optimistic about its future. 

Potentials: 

Castrol India has a clear growth plan. The company wants to expand beyond automotive lubricants. It is working on advanced lubricants for electric vehicles (EVs). EVs are growing, and Castrol wants to stay relevant. The company is also making eco-friendly and sustainable products. 

Castrol India plans to grow in the industrial and marine lubricant sectors. It wants to provide solutions for factories, machinery, and ships. It is also focusing on digital sales. Customers will find it easier to buy products online. 

The company is looking for new partnerships and acquisitions. If Saudi Aramco buys BP’s lubricant business, Castrol India may see big changes. This could bring more investment and new opportunities. 

Castrol India is also working on a stronger supply chain. It is investing in better technology to improve production. The company has a history of high dividends. It plans to continue rewarding shareholders. 

The rise of EVs is a challenge. But Castrol India believes the demand for lubricants will stay high. Many vehicles still need engine oil. The company expects steady growth until at least 2030. It is also exploring new business areas. 

Castrol India has no debt and strong financial health. It is preparing for the future with smart plans. The company’s focus on innovation and expansion will help it grow. It wants to remain a leader in the lubricant market. 

Analyst Insights: 

  • Market capitalisation: ₹ 23,251 Cr. 
  • Current Price: ₹ 235 
  • 52-Week High/Low:₹ 284 / 163 
  • Stock P/E  : 25.3 
  • Dividend Yield: 3.62 % 
  • Return on Capital Employed (ROCE): 55.2 % 
  • Return on Equity: 41.8 % 

Castrol India is a strong and safe company because it has no debt. This means it does not have to repay any loans. It also gives good returns on money invested. The company pays a good dividend (3.62%), so investors get regular income. It also shares most of its profits with investors, which is a good sign. 

But the company’s sales and profits are not growing fast. Foreign investors are selling their shares, which is not a good sign. The stock is cheaper than its competitors, so it may be a good deal. But the stock price has not increased much in 10 years, so it may not give high returns. 

If you want a safe stock with regular income, this is a good choice. But if you want fast growth, it may not be the best. It is better to hold the stock and buy more when the price drops.