I’ve discussed this before, as
As the stock has been excluded from indices, most of these funds have sold out of their position as they are mandated to only hold stocks that belong to the index they track
They have a gross debt of 564 Cr and cash position of 612cr so net debt is cash - debt
612-564 =48 cr net cash
Another day, another downside move on Raymond Realty - it was down nearly 10% today.
After a 54% fall in just 4 months, I begin to wonder if the market is truly efficient and accurately prices stocks
Gemini response to - Did raymond demerger create any value for the shareholders?
The short answer is yes, the demerger initially created significant value (unlocking a potential ~40-50% upside at the time of listing). However, investors who held on until today (November 2025) have seen much of that value erode due to a sharp correction in the stock prices of all three entities.
To give you the complete picture, we need to look at the “Sum of Parts” before and after the two major splits: Raymond Lifestyle (September 2024) and Raymond Realty (July 2025).
Let’s calculate the value for a shareholder who owned 5 shares of the original Raymond Ltd just before the first demerger (July 2024).
After both demergers, the shareholder would own three distinct sets of shares. At their listing peaks, the value looked like this:
| Entity | Quantity | Peak Price (Approx.) | Total Value |
|---|---|---|---|
| Raymond Ltd (Residual/Engineering) | 5 Shares | ~₹2,000 (Sept '24) | ₹10,000 |
| Raymond Lifestyle (4:5 Ratio) | 4 Shares | ~₹3,000 (Listing High) | ₹12,000 |
| Raymond Realty (1:1 Ratio) | 5 Shares | ~₹1,050 (Listing High) | ₹5,250 |
| TOTAL PEAK VALUE | ~₹27,250 |
Verdict: The structural separation was a massive success, theoretically turning a ₹16,000 investment into ₹27,250—a gain of nearly 70% due to the “holding company discount” being removed.
However, the market has corrected significantly in late 2025. If that same shareholder held all shares until today, the picture is different.
| Entity | Quantity | Current Price (Nov '25)* | Current Value |
|---|---|---|---|
| Raymond Ltd (Engineering/Denim) | 5 Shares | ~₹496 | ₹2,480 |
| Raymond Lifestyle | 4 Shares | ~₹1,120 | ₹4,480 |
| Raymond Realty | 5 Shares | ~₹487 | ₹2,435 |
| TOTAL CURRENT VALUE | ~₹9,395 |
*Note: Prices are estimates based on market data from mid-late November 2025.
The Grim Reality: The current portfolio value (~₹9,400) is lower than the pre-demerger investment (~₹16,000).
Did it create value?
Strategic Takeaway: The Raymond demerger is a classic textbook example of how corporate actions can unlock value, but they cannot sustain value if the underlying sector performance or broader market sentiment turns negative.
What do you think is the reason for the street’s skepticism for the Raymond Group? I am not fully aware of any corporate governance issues for this group
In terms of numbers, in my opinion they have done quite well - meeting or exceeding expectations
in Q1 FY26 they did 392cr revenue on 10% EBITDA margin and cited lack of inventory for the lower sales and dip in operating leverage for the margins, which I felt was a bit hollow but gave them the benefit of the doubt.
They did reiterate their guidance of 20% growth in top-line and 20% EBITDA margin for full year FY 26, despite the weak Q1 FY26 - and explained that most of their launches will come in Q3FY26 and Q4FY26 and can bring some additional inventory for Q2, and also kept expectations low by stating that Q2 is also expected to be in line with Q1
Come Q2, to my surprise - they delivered exactly what they said, if not better - 700cr revenue on ~14% EBITDA Margin, and stated that they are still on track for Full Year FY 26 guidance.
The numbers also seemed to check out
Currently, RRL trades at a Forward P/E of just 9x, which I will say is ridiculously cheap when the 10 year average forward P/E in the property sector is 30x
At base case - lets assume the following
And even an extreme bear case -
With the current prices at 465 there’s a good margin of safety
Reports of some mixed development coming up on 7.26 acres of Thane land parcel.
This could be the first foray of Raymond Realty into proper commercial real estate, till now they have only done some small retail units which were attached to residential gated developments.
Realisations and margins could be better in commercial development, need to watch what is the plan whether outright sale or mix of sale and leasing.
Big news for Thane! 🔥
— Sunny (@Sunny29223375) November 24, 2025
Raymond Realty plans a huge 1.35M+ sq ft commercial complex on 7.26 acres at Pokhran Road.
Features: offices/IT, retail, restaurants, banquets, club & auditorium
• Wing 1: 23 floors (114.08m)
• Wing 2A: 2 floors (14.10m)
• Wing 2B: 40 floors (188.48m) pic.twitter.com/eIXKMmXXOj
Also, multiple posts on social media seems to indicate that a new project branded as Invictus by GS (Bandra 2 JDA, in MIG Colony) is getting launched very soon. Wadala launch is also expected in Q3.
Power is the freedom to shape your own world.
— Raymond Realty (@RaymondRealtyIN) November 22, 2025
A life where every moment is perfectly held, every choice made with intention.
The Gold Collar Life, Coming Soon to BKC.#RaymondRealty #Raymond #GoldCollarLife #ComingSoon #RealEstate #BKC #Mumbai pic.twitter.com/3889DDqU76
Another point leading to a sharp fall today in the stock was the MSCI rejig in which Raymond Realty was deleted from the MSCI India Index. This lead to sharp sell off from index funds with most of the volume in the last 30 minutes, overall around 72% delivery percentage reported on NSE.
This makes so much sense
However I wonder if the selling ttoday was entirely explained by this
because the only fund that tracks the MSCI Small Cap Index is BlackRock’s iShares SMIN ETF,
Which only held 75k shares of Raymond Realty,
https://www.ishares.com/us/products/239660/ishares-msci-india-smallcap-etf
Also as a quick reminder, Raymond Realty Market Cap is now almost equal to just the Surplus from Project Cash Flow (Market Cap - 3122cr)
The numbers mentioned in the investor presentation are not relaible
Because it is mentioned in the every page of presentation in very small sized letter
“These figures represent historical financial performance including the Raymond Realty Division of Raymond Limited before its demerger on April 01, 2025 (appointment date). Figures are provided solely for ease of comparison and
do not form part of the published financial results in SEBI format.”
https://raymondrealty.in/wp-content/uploads/2025/10/Investor-Presentation-Q2-FY26.pdf
Even the quarter Q2 results revenue do not match with Investor Presentation numbers
Raymond launches Invictus by GS, BKC. This was the Bandra 2 JDA with revenue potential in excess of 2000 crores.
I asked them the same question in Q1
and this explains it very well
My original email:
I am a shareholder of Raymond Realty
I am trying to ascertain Raymond Realty’s Financials, and I am currently having a hard time putting together the numbers.
I am concerned about which source to rely on to understand the company’s financial performance.
In the Raymond Annual Report for Financial Year 2024-25, the Total Income of the Real Estate Undertaking is provided as INR 2,351 cr for Financial year ended 2024-25 in Note 44 “Analysis of discontinued operations” on page 369
Similar Numbers have been provided in the investor presentation dated June 2025 on page 35
However, on the information memorandum and the Q1FY26 results that were announced, the revenue numbers are different.
In the information memorandum dated June 2025 on page 131 the Total income for the financial year ended 31 March 2025 is stated as INR 567 cr
And on the latest published results for Q1 FY26, the consolidated revenue for year ended FY2024-25 is provided as INR 567 cr
https://raymondrealty.in/wp-content/uploads/2025/08/Financial-Results-and-Press-Release.pdf
Could you please explain the difference in these numbers and also specify which numbers/financials to rely on further?
Based on this we can evaluate the remaining 55 acres thane land parcel
This is part of 2019 update see the article date as well. Or Am I missing something?
Yes. This happened in 2019,we got a base value for that land parcel based on the previous selling price
Very helpful - so in 2019, 710cr for 20 acres at 35.5cr per acre. Can imagine what that will be worth today
There is a concept called ready reckoner rate which is set as guideline value by state goverment
Can someone check the ready reckoner rate for the year FY 2025 - 2026 in Thane?
Detail Info
Rate change for 2025-26 (statewide) RR rates in Maharashtra revised effective 1 April 2025.
Increase for Thane district + 7.72% over previous RR rate.
Purpose of RR Rate Used by state govt for stamp duty / registration — defines minimum “official value” for property sale registration.
For FY 2025-26, RR (circle-rate) for Thane has officially increased 7.72%. So any stamp-duty / registration will be calculated on new RR (unless agreement value is higher).
If you buy a flat in Thane now (2025-26), the government cost (stamp-duty + registration) will be higher than last fiscal/year — this will raise the effective cost a bit.
But exact “per-sq ft RR value for your locality” is not publicly available from the recent revision (at least in formats
But there’s no reliable public data giving absolute RR rate (₹/sq ft) for each locality under Thane for FY 2025-26
some of my enquiries with not so reliable real estate people in this area suggested a around Rs70cr per acre around Raymond and Pokharan road , so the remaining land is valued easily more than entire company, big overhang here is Legacy Raymond corporate governance and Realty is relatively new , may need 3-4 more years of execution with credibility.
Can Anybody confirm how the land parcel is treated in their financial statements
Either it is considered as Asset / Investment or Inventory?
For a real state developer it’s an inventory
Plz listen to their concall last Q, I think they briefly mentioned it and clarified how its accounted (CEO mentioned , it no way reflects the current market price of land assets)
Yeah I believe the land is held at historical cost which is very minimal compared to market value
