Raymond Realty Debuts at ₹1005 – Unlocking Value and What Lies Ahead

Discover how Raymond Realty made its standalone debut at ₹1005 on July 1, 2025, with Ventura’s ₹1383 target. Explore the backstory, fundamentals, technicals, and future potential of this pure-play real estate spin-off.

The Story Behind the Spin-Off

Raymond Ltd, one of India’s most iconic brands, has long operated in diverse sectors such as textiles, garments, engineering, and real estate. However, on May 1, 2025, the company took a significant step toward restructuring by demerging its real estate arm, Raymond Realty Ltd, into a separate entity.

Under the terms of the demerger, every shareholder of Raymond Ltd received one share of Raymond Realty for each share they held. This move was not just about simplifying the company structure — it was aimed at unlocking the hidden value of its real estate business. Investors could now directly benefit from the realty segment’s growth without being tied to the manufacturing or textile operations.

After the demerger was announced, Raymond Ltd's stock price adjusted accordingly and saw a sharp decline of around 66 percent. This was a technical adjustment and did not reflect a fall in business performance, but rather the removal of the realty arm’s value from the parent stock.

The Debut – A Modest Opening, Strong Hopes

On July 1, 2025, Raymond Realty made its much-awaited debut on the Indian stock exchanges. The stock is listed at ₹1000 on the NSE and ₹1005 on the BSE, slightly below expectations but still in a stable range considering broader market conditions.

Brokerages, however, remained bullish on the newly listed stock.

Ventura Securities gave a base target price of ₹1383 based on its discounted cash flow model. It projected robust growth in revenue, EBITDA, and profit after tax, estimating a compound annual growth rate of 20 percent, 17 percent, and 15.9 percent respectively till FY2028. Ventura’s bull-case scenario saw a price of up to ₹1756.
SBI Securities offered a fair value of ₹1148, using a 13x EV EBITDA multiple with a 10 percent EBITDA growth expectation. It estimated the stock could trade between ₹897 and ₹1430 in the near term.

These optimistic projections were rooted in Raymond Realty’s strong asset base and its strategic expansion plans, especially in Thane and Mumbai. The total Gross Development Value from Thane and its Joint Development Agreements is estimated at over ₹39000 crore.

Present Fundamentals – A Strong Base to Build On

Financial Performance for FY25

Revenue: ₹2313 crore, showing a strong 45 percent year-on-year growth
EBITDA: ₹507 crore, up 37 percent YoY
EBITDA Margin: Approximately 21.9 percent overall and 25.3 percent in Q4
Quarterly pre-sales in Q4: ₹636 crore, lower due to no new launches
Net cash surplus: ₹395 crore, with cash reserves of ₹585 crore and debt of ₹190 crore

These figures paint the picture of a fundamentally sound company. Raymond Realty is currently debt-light and operates with an asset-light model, primarily depending on joint development agreements for nearly 40 to 45 percent of its revenue — a share expected to rise to 70 percent in the long run. This model reduces capital expenditure and lowers execution risk.

Land Bank and Project Pipeline

Thane: 100 acres total; currently developing 40 acres, with 7 million sq ft under construction. Expected revenue: ₹9000 crore. The remaining 60 acres could generate an additional ₹16000 crore over the next 6 to 8 years.
Mumbai JDAs: Spread across key locations such as Bandra, Mahim, Sion, and Wadala, with a potential revenue of ₹14000 crore

The management has clearly stated that they will only take up projects with a minimum 20 percent margin, showcasing financial discipline and a long-term commitment to shareholder value.

Technical Snapshot – Early Signals

Since Raymond Realty has only just been listed, there is limited historical technical data. However, observing Raymond Ltd’s stock in the lead-up to the listing offers clues.

As of July 1, Raymond Ltd’s shares were trading near one-month highs.

RSI hovered around 59, indicating a neutral to bullish stance
MACD showed a bullish crossover
ADX near 36 suggested a strong uptrend in the parent stock

Short-term moving averages indicated upward momentum, while long-term indicators like 50-day and 200-day SMAs showed consolidation. This hints at a possible bullish reversal in the longer term, which could positively influence Raymond Realty’s sentiment in the coming weeks.

Looking Ahead – What’s Driving the Future

Key Value Drivers

JDA's expansion strategy in Mumbai is expected to generate massive revenue without high upfront capital needs
Thane land bank offers long-term visibility and growth for nearly a decade
Conservative approach to new project selection based on minimum margins ensures financial strength
Being a focused real estate entity enhances investor understanding and could lead to higher valuations

Risks to Watch

Regulatory delays and RERA approvals can hamper project timelines
A macroeconomic slowdown or rise in interest rates may reduce housing demand
Any execution delays in JDAs or Thane development could impact revenue targets

What Is Raymond Realty Worth

According to brokerage forecasts, Raymond Realty’s medium-term fair value ranges from ₹1150 to ₹1400. Ventura’s base case of ₹1383 and bull case of ₹1756 offer a clear upside from its listing price of ₹1005.

These valuations are based on:

EBITDA growth of over 15 percent CAGR
Net debt-free operations
Continued rollout of Thane and JDA projects
Market re-rating of the company’s standalone performance

Compared to listed peers in real estate that trade at EV EBITDA multiples of 17x or more, Raymond Realty’s current valuation offers attractive entry potential.

Final Words – The Bigger Picture

Raymond Realty’s listing marks a new chapter for Raymond Group and its investors. This isn’t just a new stock on the bourses — it’s a clean, focused, and agile real estate entity with significant land assets, a lean balance sheet, and an asset-light growth model.

With a base target of ₹1383 and a promising roadmap, the company is positioned to deliver consistent value to investors over the next five to ten years. Investors looking for a real estate play rooted in fundamentals, financial discipline, and strategic foresight may find Raymond Realty to be a compelling bet.

Author’s Note:
Raymond Realty’s debut may appear muted on the surface, but the true value lies in its long-term strategy, efficient execution, and sharp financials. Investors should monitor quarterly earnings, project progress, and macroeconomic conditions to assess sustained potential. As always, investing requires patience and research.

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