Raymond forays into aerospace, defence, EV parts business; stock rises 3%

Shares of Raymond Ltd rose 3% in the afternoon session today after the Raymond Group announced the acquisition of 59.25% stake in Maini Precision Products Limited (MPPL) for Rs 682 crore funded by a mix of debt and internal accruals. Raymond stock rose 2.86% to Rs 1866 against the previous close of Rs 1814.65 on BSE today. Total 0.22 lakh shares of the firm changed hands amounting to a turnover of Rs 4.13 crore. Market cap of the firm rose to Rs 12,355 crore on BSE.

Raymond stock opened higher at Rs 11831.45 today. Raymond has a one-year beta of 0.9, indicating low volatility during the period.

In terms of technicals, the relative strength index (RSI) of the stock stands at 53.1, signaling the stock is neither overbought nor oversold on technical charts. Raymond shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. Shares of Raymond have gained 47.53 per cent in a year and risen 23.78 per cent in 2023.

With this acquisition, Raymond Group will mark its foray into sunrise sectors of aerospace, defence and EV components business.

“This acquisition is a strategic move to further strengthen Raymond’s existing engineering business with a complementing business that has presence in the sunrise sectors of aerospace, electric vehicles (EV) and defence. The consolidated business caters to the top Global OEMs and Tier 1 manufacturers across aerospace, defense, auto and industrial businesses,” said Raymond.

Through the acquisition, Raymond Group will consolidate its engineering business of JK Files, RPAL and MPPL under one entity building scale and size

“The acquisition will be concluded through Ring Plus Aqua Limited (RPAL), a subsidiary of JK Files and Engineering Ltd (JK Files). Raymond Ltd. will hold 66.3% in the “Newco” that will focus on precision engineering products. The proforma consolidated revenue of “Newco” as of FY23 are Rs 1600 crore with an EBIDTA of Rs 220 crore,” added Raymond.

The transaction will be subject to requisite regulatory approvals and is expected to be completed during the current fiscal.

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