After hitting an all-time high on Thursday, Raymond share price slipped 7% on profit-booking today after Godrej Consumer Products acquired the FMCG business of Raymond Consumer Care for Rs 2,825 crore.
Raymond stock opened lower at Rs 1,710 on Friday, further slipping 7.36% to Rs 1,590.80 on BSE. The stock has fallen after 10 days of consecutive gain. Raymond group on Thursday also announced the demerger of its lifestyle business to Raymond Consumer Care Limited (RCCL) to create a listed company.
This step will make Raymond Ltd primarily a real estate company with investments in engineering and denim business. Raymond CMD Gautam Singhania mentioned it as 'killing three birds with a stone' in a conversation with BTTV's Rachna Dhanrajani.
On April 28, 2023, a total of 0.8 lakh Raymond shares changed hands amounting to a turnover of Rs 13.77 crore in the morning session. Presently, the stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Shares of Raymond have gained 93% in the last one year.
So far in 2023, Raymond shares have risen around 7%. The market cap of Raymond Ltd fell to Rs 10,758 crore on NSE as of 11:30 am today (April 28). The stock hit a 52-week high of Rs 1,714 on NSE yesterday and 52-week low of Rs 737 on May 12, 2022.
In terms of technicals, the relative strength index (RSI) of Raymond stock stands at 83, signalling it is trading in the overbought zone. Raymond stock has a one-year beta of 1.2, indicating very high volatility during the period.
On Thursday, Godrej Consumer stated, “Raymond Consumer Care's FMCG business is being sold to GCPL along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale. The deal is expected to be completed by May 10, 2023.”
"Raymond has shown a V-shaped recovery from the last breakout level at Rs 1,100-1,150. The overall structure of the stock looks lucrative, as it is trading above its all-important moving averages," said Pravesh Gour, Senior Technical Analyst at Swastika Investmart.
"On the higher side, Rs 1,750 is acting as an important psychological level. Above this, we can expect a level of Rs 1,800-plus in the near-short term, while on the lower side, it has already given a big move in April. So, support will come at around Rs 1,550 level," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart.
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