Multibagger defence stock Raymond retraces after jumping 7% amid weak trends on D-Street | Check target, upside
Multibagger defence stock Raymond retraced after jumping over 7% during the intraday session on Wednesday, amid weak sentiments in the Indian stock market.
Raymond share price opened at ₹1,019 apiece on the NSE on Wednesday, against the previous close of ₹1,081.20 on Tuesday. The multibagger defence stock initially rallied nearly 7% to hit an intraday high of ₹1,160.50. However, it failed to sustain the gains and reversed course, falling over 3% to an intraday low of ₹1,061.10.
Raymond reported a nearly 130% year-on-year (YoY) surge in consolidated net profit to ₹32 crore in Q2 FY27, compared with ₹13.9 crore in the corresponding quarter last year.
The company's revenue from operations grew 24.1% YoY to ₹655 crore in the September quarter, up from ₹527.7 crore a year earlier.
Operating performance also strengthened, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising 74.4% YoY to ₹75 crore from ₹43 crore in the year-ago period.
Raymond's EBITDA margin expanded to 11.5% in Q2 FY27, compared with 8.14% in the corresponding quarter of the previous fiscal year, marking an improvement of approximately 336 basis points.
Raymond had earlier announced on October 24 that its board had approved a proposal to rename the company from Raymond Limited to Raymond Aerospace, Defence & Engineering Limited.
The proposed name change is subject to shareholder approval through a special resolution, clearance from the Central Government and the Registrar of Companies or Central Processing Centre, as applicable, and approvals from the BSE and the National Stock Exchange of India under the relevant Securities and Exchange Board of India (SEBI) regulations.
The board has also cleared the related amendments to the company's Memorandum of Association (MOA) and Articles of Association (AOA), subject to the necessary statutory and regulatory approvals.
Raymond shares have witnessed selling pressure in the near term, declining 2.29% over the past week and 9.83% over the past month. The recent weakness indicates a correction in the stock, despite its strong gains over the longer term.
On a year-to-date (YTD) basis, Raymond shares have surged 150%, while the stock has gained 84.67% over the past year, reflecting substantial appreciation during these periods.
However, the stock's performance over a longer time horizon has been mixed. Raymond shares have declined 38.90% over the past three years, while delivering a 134.26% gain over the past five years.
According to Gaurav Garg, Head - Research, Lemonn, Raymond’s improving Q2 FY27 earnings and aerospace and defence growth prospects are encouraging, but valuation risks and weak short-term momentum warrant caution.
Garg recommended existing investors may HOLD with disciplined risk management, while fresh investors should WAIT for a sustained recovery.
“The stock faces resistance at ₹1,100– ₹1,120, with support around ₹1,055– ₹1,060. A break below ₹1,035 could intensify selling pressure. Investors should monitor margins, order execution and earnings growth before making further investment decisions,” Garg said.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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