Raymond shares tumble after 7% rally on weak market sentiment

Raymond shares fell after a sharp intraday rally, opening at ₹1,019 on Wednesday, down from ₹1,081.20 the day before. The stock had surged nearly 7% early in trade, reaching a high of ₹1,160.50, but could not hold the gains and slid more than 3% to a low of ₹1,061.10. In the September quarter (Q2 FY27) Raymond posted a consolidated net profit of ₹32 crore, a 130% year‑on‑year rise from ₹13.9 crore. Revenue from operations grew 24.1% YoY to ₹655 crore, up from ₹527.7 crore a year earlier. EBITDA increased 74.4% to ₹75 crore, lifting the EBITDA margin to 11.5% from 8.14% a year ago, an improvement of about 336 basis points. The board, on October 24, approved a proposal to rename the company Raymond Aerospace, Defence & Engineering Limited, pending shareholder approval, clearance from the Central Government, the Registrar of Companies, and SEBI‑related clearances from BSE and NSE. The board also cleared amendments to the company's memorandum and articles of association, subject to the same statutory approvals.

Context

Raymond, historically a textile maker, has been expanding into defence and aerospace, prompting the proposed name change. Such diversification aims to capture higher‑growth segments but can cause stock volatility, especially when broader market sentiment is weak.