If you’ve glanced at your portfolio lately and seen Raymond Ltd stock price sitting around the ₹395 mark, you probably felt a momentary heart attack. It looks like a total collapse. Down over 70% in a year? That’s usually the kind of chart you see when a company is heading for the exits. But here is the thing: Raymond isn’t dying. It’s actually being chopped into pieces, and if you aren't paying attention to the math, you’re missing the real story.
Honestly, the "price" you see on Google Finance right now is a ghost. It’s the remnant of a massive corporate surgery.
The Demerger Chaos and Why the Price Tanked
Basically, Raymond decided that being a giant, tangled ball of yarn wasn't working for the stock market. Investors hate "conglomerate discounts." That’s just a fancy way of saying if you sell suits, build apartments, and make car parts all in one company, nobody knows how to value you. So, Gautam Singhania and his team spent the last year slicing the company into three distinct businesses: Lifestyle, Real Estate, and Engineering.
When the Lifestyle business (the stuff you actually recognize like Park Avenue and ColorPlus) got spun off, the "value" of that business left the main Raymond Ltd ticker. Think of it like a house being split into three separate lots. The original lot price drops because it no longer includes the pool or the garage.
On January 16, 2026, Raymond Ltd stock price closed at ₹395.25. Compared to the ₹1,700+ levels it saw in early 2025, it looks like a disaster. But you’ve got to remember that shareholders received shares in Raymond Lifestyle Ltd (currently trading around ₹942) and are set to get pieces of the Realty arm too.
What’s Actually Left in Raymond Ltd?
Right now, the ticker you’re watching is increasingly becoming a play on Engineering, Aerospace, and Defence.
The company recently got the NCLT nod to consolidate its engineering business under JK Maini Precision Technology. They are moving away from just making files and drills. They are chasing the "China Plus One" strategy, trying to become a global supplier for aerospace components.
The Performance Reality
- Q2 FY26 Revenue: Around ₹563 crore.
- Net Profit: A modest ₹13.89 crore for the quarter.
- The Shocking Part: Profit plummeted over 90% year-on-year, but again—this is because the high-margin clothing business isn't in these numbers anymore.
It’s confusing. Most retail investors see the red percentage on their screen and panic-sell. Big mistake. You have to look at the "sum of the parts." If you add the current price of Raymond Ltd to the value of the Lifestyle shares you were given, many long-term holders are actually doing okay.
Why the Market is Acting So Weird
Markets hate uncertainty. Even though the demerger is a "value unlocking" move, the actual mechanics of it are messy. In the last month, the stock has dropped about 8%. Some of that is just the general gloom in the Indian markets due to global trade tensions, but a lot of it is "mechanical selling."
Institutional investors (FIIs) have been trimming their stakes. They moved from 202 investors down to about 179 recently. When big funds see a restructuring, they often sell first and ask questions later. They want to see the new entities stand on their own feet for a couple of quarters before they buy back in.
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Raymond Realty: The Dark Horse
While the engineering side is the "new" Raymond Ltd, the Raymond Realty business is the one everyone is whispering about. They are targeting a ₹40,000-crore portfolio. In December 2025, they were already talking about 20% growth for the upcoming year.
They have a massive land bank in Thane. Instead of just selling the land, they are building "premium" townships. It’s a capital-light model because they own the land already. That’s a massive advantage over developers who have to borrow billions just to buy a plot in Mumbai.
What the Analysts are Saying
It’s a polarized field. On one hand, you have firms like Motilal Oswal who have been generally positive about the "simplification" of the structure. They like the transparency. On the other hand, the stock is currently trading near its 52-week low.
- Bull Case: The average 1-year price target for the "new" Raymond Ltd is hovering around ₹862. That’s a massive upside from the current ₹395 level.
- Bear Case: The "Engineering" business is a tough, low-margin grind compared to the "Lifestyle" business. If the aerospace venture doesn't take off fast, the stock could stay in the basement for a while.
Should You Be Buying This Dip?
Look, catching a falling knife is dangerous. But Raymond Ltd stock price isn't falling because the company is failing; it's falling because it's getting smaller by design.
If you are a value investor, the current P/E ratio looks insanely low (under 1.0 in some trailing metrics), but that’s distorted by the demerger accounting. You need to look at the Book Value, which is around ₹3,685 crore for the consolidated entity. The market cap is currently sitting at roughly ₹2,628 crore.
Mathematically? The stock is cheap. It’s trading well below its intrinsic value if you believe their aerospace and real estate dreams are real.
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Actionable Steps for Investors
- Check Your Demat: If you held Raymond before the split, make sure you actually received your Raymond Lifestyle shares. Don't just look at the Raymond Ltd price and assume you've lost money.
- Watch the H2 Launches: Keep an eye on the new real estate launches in Thane and Pune. That’s where the cash flow is going to come from in 2026.
- Mind the "Engineering" Pivot: The success of the "new" Raymond Ltd depends entirely on their ability to scale JK Maini. If they land a major contract with a global aerospace giant, this ₹395 price will look like a gift.
- Wait for the FII Stabilisation: Wait for the Foreign Institutional Investor selling to dry up. Once the "holding pattern" stabilizes, the price floor will become much clearer.
Don't let the "70% drop" headline scare you. It’s a math trick, not a bankruptcy. The "Complete Man" is just getting a very expensive, very complicated haircut.