214% Return In 6 Months! Raymond Multibagger Stock Falls Nearly 2% Despite Defence Index Gain; Should You Buy?

Raymond shares fell on Friday, September 25, even as the broader defence stocks remained relatively firm during the session. The stock closed at Rs 1,183, down Rs 20.85 or 1.73%, after touching an intraday high of Rs 1,223.85. The decline came after a sharp rally in recent months, with investors closely tracking the company's growing aerospace and defence business.

At the same time, Raymond's fall was notably sharper than the movement in the Nifty India Defence index, which was trading around 9,401.65, up 0.43% during the session. This divergence puts the focus on stock-specific profit booking in Raymond after its substantial run-up rather than a broad sell-off across defence stocks.

Raymond Share Price Today: Defence Stock Falls After Hitting 52-Week High

Raymond opened Friday's session at Rs 1,208.90 and initially moved higher, touching Rs 1,223.85. However, selling pressure increased later in the session and the stock slipped to an intraday low of Rs 1,172 before closing at Rs 1,183.

Despite Friday's decline, the stock has delivered strong gains across different timeframes. Raymond shares were up around 10% in one week, 70% in one month, 84% in three months and 214% in six months. On a one-year basis, the stock had gained nearly 74%.

Defence Index Today Vs Raymond

While Raymond declined 1.73% at the close, the Nifty India Defence index was showing a gain of around 0.43% during the trading session. This indicates that the selling pressure in Raymond was considerably stronger than the movement in the wider defence basket.

For investors tracking the stock as a defence-related play, the comparison is important because Raymond's recent rally has been driven by company-specific developments in aerospace and engineering rather than simply by the movement of the overall defence index.

Why Is Raymond Stock In Focus? Aerospace Defence Order Is Key Trigger

One of the major developments behind the renewed investor interest is Raymond's aerospace and defence subsidiary JK Maini Global Aerospace Ltd emerging successful in a tender from a leading Indian aerospace and defence original equipment manufacturer.

Under the proposed program, the subsidiary will assemble wing structures and centre fuselage structures for a major indigenous fighter aircraft. The development potentially takes Raymond's aerospace business into a higher-value part of aircraft manufacturing. Instead of being limited to precision components, the company is moving towards the assembly of larger aircraft structures.

The aerospace opportunity follows Raymond's acquisition of Maini Precision Products, which expanded the group's engineering presence across aerospace and defence, tools and auto components.

"Raymond's aggressive rebound comes on the back of the increasing confidence of the market in its prospects in engineering and aerospace. While the positive earnings and growth potential provide support to the story, the possibility of earnings booking and volatility in the near term after such a massive gain is a reasonable one," said Siddharth Maurya, Founder and Managing Director, Vibhavangal Anukulakara Pvt. Ltd.

"Looking at current valuations, it remains to be seen if the company can generate enough earnings and cash flow growth to justify its valuation. Over the medium term, successful execution and order scaling in aerospace will play an important role," the expert added.

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