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Will Raymond Hold Its Breakout And Rally 20% ?

Will Raymond hold its breakout and rally 20% ?

Raymond – improved Q2 results

After a disappointing Q1FY18 performance, Raymond reported much better earnings for the quarter ended September 30, 2017, notwithstanding the challenges associated with seasonality, advancement of sales to the June quarter and GST implementation.

The branded textile segment was impacted by lower off-take by the wholesale channel for suiting products. An early onset of the festive season, however, helped trade channels in the last 15-20 days of September, thereby leading to an increase in sales with respect to Raymond’s shirting fabric and ‘Made To Measure’ brands. Operational efficiencies led to a marginal margin improvement.

Raymond’s branded apparel segment gained strong traction during the September quarter due to high demand from trade and an extension of the ‘end of season sale’ period. The company’s Ready to Wear, Park Avenue, ColorPlus, and Parx brands recorded good growth.

Raymond’s high-value cotton shirting fabric segment, which has been a fairly steady performer for the company, witnessed marginal growth on account of a decline in customer spends from July to September. Nevertheless, a better mix of products and stable raw materials aided margin stability.

Appreciation of the rupee against the US dollar affected the product mix, realisation and margins of Raymond’s garments segment in the second quarter of the ongoing fiscal.

The company added 54 new stores (including 31 mini ‘The Raymond Shop’ stores and one exclusive brand outlet) mainly through the franchise route, shut 12 stores, and renovated 13 stores in the second quarter of the fiscal.

Higher realisations, volume-driven growth in the Latin American and African markets, and turnaround measures gave Raymond’s tools and hardware segment a shot in the arm in Q2FY18.

Raymond’s auto ancillary segment reported healthy volume growth of nearly 12 percent on the back of post-GST re-stocking by dealers, higher export realisations, and tailwinds in demand for passenger/commercial vehicles in the September quarter.

Source Moneycontrol.com

Technical

Raymond: Stock is making a fresh lifetime high, Which let to give a breakout from the probable bullish cup and handle pattern with rising in volume and supportive momentum as we find RSI is moving higher and taking support at 60 levels. Thus we can keep this stock in radar with a positive bias. On the upside, we can expect around 964-1000 in coming trading session

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