Raymonds (CMP:539) may be a wealth builder in the process. Its a strong brand with powerful distribution set up and over the last few years, Raymonds has been able to bring its core business on track by solving many overhang operational issues. It has also a considerable vast land bank near Thane (Mumbai), which may also be monetized in the coming days. The company may be also in the process of some sort of restructuring. With possible growth in income, specially for the middle class people in India, improving demographics along with rising aspirations, better life style and discretionary spending, Raymonds is well poised for a quantum jump in its growth. But, in my personal view, Raymond should priced its brands more competitively with respect to other brands including online retailers and ensure that in every prominent shopping malls, it has a outlet, besides its existing regular distribution chain to attract more customers in the "AA" (Common man) category.
Technically, Raymond should sustain above 539-550 zone for 580 in the short term. Its mid term target may be 610-685 and it could target 800 zone in the long term.
On the downside, it has immediate support of around 512-510 zone & below that 485-475 zone should offer positional support in the current market conditions.
As par BG model its median Techno/Funda valuation is around 615 (consolidated data) and 610 (standalone data) under the current market conditions.
| SCRIP | EPS(TTM) | BV(Act) | P/E(INDS) | LONG TERM | SHORT TERM | MEDIAN VALUE | 200-DEMA | 10-DEMA |
| RAYMOND | 16.21 | 238.86 | 46.7 | 587.19 | 642.32 | 614.76 | 455.47 | 545.01 |
| RAYMOND | 15.98 | 179.34 | 46.7 | 583.01 | 637.75 | 610.38 | 455.47 |
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