Raymond decided to highlight the revenue numbers in the presentation as there has been a substantial growth in accounting terms. (135% YoY) 571 Cr vs 243 Cr.
However, there has been degrowth in booking value in this quarter. (-13.5%) 562 Cr vs 650 Cr.
While I have no clue of what led to this, chances are the month of Shraad getting extended might be the cause. May be a lot of booking may have been pushed to Q3.
Management has reaffirmed 20-25% growth in booking value this year.
Booking value (no. of units sold) gets a bump-up with new launches. Since new launches don’t happen every quarter, this could be uneven. I guess there were a couple of new launches in Q2 of last year
They’ve clearly mentioned the number of shares Raymond had issued to Raymond Lifestyle shareholders. But with this amount of shares, 5.3 cr. shares and the current price of 2,200 rupees per share would mean that the company has a market cap of around 11,500 cr. But the screener shows market cap as 13,400 cr. Am I missing something or the screener data is wrong?
The total no of equity shares for Raymond Lifestyle is 6.1 crore shares. Additional shares were issued to some group entity. You can check the shareholding pattern
This shows the comparable base, also separates the MPPL revenue.
Engineering (excluding MPPL) has remained flat over last 4 years in Q2 as well as for full year.
Company have approved to invest an amount up to Rs. 50 Crore in the form of Redeemable Preference Shares in one or more tranches in Ten X Realty West Limited (“TXRWL”), a step down wholly owned subsidiary of the Company.
TXRWL is a relatively new company, formed to work on real estate redevelopment projects, but it hasn’t made any revenue yet. This investment will help TXRWL carry out its projects.
TXRWL is already owned by Raymond, this is not an acquisition but a way to financially support its expansion in the real estate sector.
Raymond Ltd (ex real estate de-merger) is trading at Rs. 550 (around 3500 crores market cap) for the engineering business. We need to wait for a few days to see all the buying / selling is done to see where it settles down. Any price indicating a valuation of over 3000 crores for engineering business would be good but not sure if it’s justified given the fact that the engineering business is small and growing slow
Raymond Ltd has been in UC since Wednesday (ex-date). This was also noticed when lifestyle demerger happened. Any reasons why they are on continuous UC for few days followed by LC for few days?
While the P&L looks optically poor, I am pleasantly pleased with the results with the core businesses doing well. Good growth seen in precision engineering as well as Aerospace. EBITDA without Other income is up 36% YoY
Most probably not but could be entry of some strategic investor. In concall they mentioned they will have enough cash accruals to fund the capex with mix of debt and equity in both subsidiaries. Also, at Raymond Ltd. level they have cash and various investments in liquid instruments and over the past few quarters slowly they have acquired stake of around 4.85% and 1.84% in Raymond Lifestyle and Raymond Realty worth today about ~284 crores (talking about it as taking benefit of current market valuations of those businesses and signalling promoter confidence). So, at this time equity raise only for some strategic investor coming in or promoter raising stake will make sense. This will be clear only post conclusion of the transaction and announcement.
