Raymond Share Price Surges 8.61%: Is This the Right Time to Invest?

As the markets eagerly await Raymond Ltd’s (RAYMOND) share price performance on September 4, 2024, investors are closely monitoring key factors that could influence the stock’s movement. With the recent demerger of its lifestyle business and the upcoming listing of Raymond Lifestyle Ltd (RLL), all eyes are on how the market will react to these significant developments.

Live Today: Market Performance, Technical Analysis, and Fundamental Analysis

Raymond’s share price closed at ₹2,180.85 on September 3, 2024, after a strong 8.61% surge. The stock has gained 16% in the past two weeks and 24% year-to-date, indicating a bullish sentiment among investors. Technical indicators suggest that the stock is currently trading above its 50-day and 200-day moving averages, signaling a positive trend.

Fundamental analysis also points to Raymond’s strong financial performance. The company delivered a return on equity (ROE) of 35.46% in the year ending March 31, 2024, outperforming its 5-year average of 16.06%. However, the company witnessed a quarter-on-quarter revenue decline of 62.86%, which is the lowest in the last 3 years.

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Today’s Target Prediction: Intraday Trading Levels and Tomorrow’s Forecast

According to the market depth data, Raymond’s share price is expected to trade between ₹2,102.45 and ₹2,111.90 on September 4, 2024. The stock’s pivot point is calculated at ₹2,106.35, with support levels at ₹2,102.45 and ₹2,105.00, and resistance levels at ₹2,107.00 and ₹2,110.00.

For the month of September, Raymond has given positive returns in 15 out of 24 years, with an average positive change of 11.02% and an average negative change of -10.46%. The stock’s maximum positive change in September was 29.30%, while the maximum negative change was -30.57%.

Quarterly Results Analysis and Market Outlook

Raymond’s consolidated net sales for the June 2024 quarter stood at ₹937.65 crore, down 47.07% year-on-year. The company’s standalone net sales for the same period were ₹361.27 crore, down 70.44% year-on-year.

Despite the decline in sales, analysts remain optimistic about Raymond’s future prospects. Motilal Oswal has a “buy” rating on the stock with a target price of ₹2,310. The brokerage firm believes that the demerger of the lifestyle business and the listing of RLL will unlock value for shareholders.

Tomorrow’s Expected Performance: Comparing Peer Stocks

As Raymond prepares for the listing of RLL on September 5, 2024, investors are keen to see how the stock will perform compared to its peers. The demerger is expected to provide a clear focus on the company’s core businesses and improve operational efficiency.

Existing investors of Raymond will be offered four shares of RLL for every five Raymond shares they hold, in a 4:5 share swap ratio. RLL aims to add 900 new outlets in the next three years, indicating its growth potential.

Key Factors Influencing the Stock’s Movement

Several factors are expected to influence Raymond’s share price movement on September 4, 2024, and in the coming days:

1. Investor sentiment towards the demerger and listing of RLL
2. Performance of the company’s core businesses, particularly the engineering and real estate segments
3. Macroeconomic factors such as interest rates, inflation, and consumer spending
4. Competitive landscape and industry trends

Bearish and Bullish Trends: Finding the Balance

While the recent surge in Raymond’s share price suggests a bullish trend, investors should also be aware of potential bearish factors. The company’s declining sales in the June 2024 quarter and the ongoing economic uncertainty due to the COVID-19 pandemic could weigh on the stock’s performance.

However, the demerger and listing of RLL are expected to provide a boost to the company’s long-term prospects. The strong fundamentals of Raymond’s engineering and real estate businesses, coupled with the growth potential of the lifestyle segment, could drive the stock’s performance in the coming months.

Today’s Update: Monthly Important Levels and Movement Causes

As of September 4, 2024, Raymond’s share price is expected to trade within the monthly support and resistance levels of ₹2,102.45 and ₹2,111.90. The stock’s 52-week high is ₹3,496.00, while the 52-week low is ₹1,487.60.

The recent surge in Raymond’s share price is primarily attributed to the positive investor sentiment surrounding the demerger and listing of RLL. The company’s strong financial performance in the previous fiscal year and the growth potential of its core businesses have also contributed to the stock’s upward movement.

Note: This article is written for educational purposes, Local Haryana does not provide buying and selling of any kind of stock