Raymond share price jumps over 30% in 6 days. Should you buy or book a profit in this small-cap stock? Experts weigh in

Raymond share price has seen mouth-watering gains in the last few days. The small-cap stock jumped almost 5 per cent in intraday trade on the BSE on Wednesday, May 21, extending gains to the sixth consecutive session. In these six sessions, the stock has jumped over 30 per cent.

On Wednesday, Raymond share price opened at ₹668.80 against its previous close of ₹676.30 and jumped nearly 5 per cent to an intraday high of ₹708.40. Around 12:30 PM, the small-cap stock traded nearly 4 per cent higher at ₹702.

The stock hit its 52-week high of ₹1,243.51 on July 8 last year and a 52-week low of ₹431.10 on April 7 this year, adjusted to the spin-off of the realty business.

Raymond Realty Limited (RRL) was demerged from Raymond on May 1. May 14 was the record date to identify Raymond shareholders eligible to receive equity shares of Raymond Realty under the scheme. According to reports, the RRL is expected to be listed in Q2FY26.

“We are delighted to announce the successful demerger of our Real Estate business, which is expected to be listed in the Q2FY26. This strategic move emphasises our commitment to drive sustainable growth via pure play business and further enhance shareholder value," said Gautam Hari Singhania, Chairman and Managing Director, Raymond, while declaring the company's Q4 results on May 12.

Raymond Q4 results

Raymond reported a consolidated total income of ₹601.40 crore for Q4FY25, up 95 per cent year-on-year (YoY) compared to an earnings of ₹308.56 crore in Q4FY24.

Profit for the period under review, however, declined 40 per cent YoY to ₹137.47 crore from ₹229.79 crore in the same quarter last year.

EBITDA increased 38 per cent YoY to ₹99 crore from ₹72 crore in Q4FY24, but EBITDA margin slipped 690 bps YoY to 16.4 per cent in Q4FY25 from 23.3 per cent in Q4FY24.

"We continue to expand our portfolio through the JDA route in this quarter, having signed two additional JDA’s, in Mahim and Wadala, aggregating to nearly ₹6,800 crore. With this, we now have a total of six projects outside our Thane Land," said Singhania.

"On the engineering business, we continue to remain highly optimistic about FY26 performance. The aerospace sector presents significant growth opportunities, and we are well-positioned to leverage the same to deliver sustained value to our stakeholders,” he said.

Raymond: Restructuring may unlock value

Experts believe the strategic restructuring may unlock value for Raymond stock.

"Following the successful demerger of its real estate and engineering businesses, Raymond is now strategically positioned to unlock focused value through independent management, sharper capital allocation, and tailored growth strategies," said Firstcall Research.

Firstcall pointed out that the reorganisation has created two high-potential entities—Raymond Realty (demerged) and Raymond (continuing).

Each entities are supported by a strong balance sheet and net cash surplus positions. The company is effectively leveraging favourable sectoral trends such as India’s real estate consolidation, urban housing demand, manufacturing resurgence, EV adoption, and global aerospace recovery," said Firstcall.

Experts at Mehta Equities also believe the demerger of Raymond Realty from Raymond is a strategic move that unlocks significant long-term value for shareholders by allowing both entities to pursue focused growth with independent strategies.

Raymond shares: Should you buy or book a profit?

While the long-term prospects of the company appear healthy, most experts suggest booking some profits in the stock at the current juncture due to its overbought conditions.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, suggests booking profits in the stock as it approaches a key breakout zone.

"Raymond has recently surpassed its three-year Camarilla pivot resistance near ₹687.15, a significant technical milestone. However, for confirmation of sustained bullish momentum, a weekly close above ₹688 is essential," said Patel.

"Until then, we recommend a prudent approach—book partial profits at current levels and await a decisive weekly close above ₹688 to consider fresh upside potential toward the ₹750 mark," Patel said.

Shitij Gandhi, Senior Research Analyst (Technicals) at SMC Global Securities, underscored that the charts indicate further positivity, with an immediate resistance level observed at ₹720. A decisive breakout above this level could propel the stock toward the ₹750 mark.

However, Gandhi added that given the sharp appreciation in recent sessions, traders should consider booking partial profits while retaining the remaining position with a trailing stop-loss to safeguard gains and manage risk effectively.

Hardik Matalia, a derivative analyst at Choice Broking, pointed out that Raymond shares have recently witnessed a strong breakout from a prolonged descending trend line resistance that had been intact for several months.

The stock previously declined nearly 48 per cent from its all-time high, entering a corrective phase marked by consistently lower highs and lower lows. However, over the past few weeks, it has shown signs of reversal by forming a base and establishing higher lows.

"The breakout was accompanied by strong volumes, suggesting increased participation and renewed buying interest. Immediate support is now placed near the ₹650 level, while the next resistance zone is around ₹725. A sustained move above this level could lead to further upward momentum," said Matalia.

However, the Relative Strength Index (RSI) currently stands at 81.49, indicating overbought conditions in the short term. While this reflects strong bullish sentiment, it also suggests the possibility of some consolidation or minor pullback before any continuation of the rally.

"The stock is trading above all its major exponential moving averages, including the 20-day, 50-day, 100-day, and 200-day EMAs, which confirms the reversal of trend and the presence of underlying strength. Given this setup, traders should be cautious about entering at current levels due to the overbought RSI and may look for dips toward ₹660– ₹680 for better risk-reward entries," said Matalia.

"Investors, on the other hand, may consider gradual accumulation at current levels with a medium-term perspective, while keeping a close watch on the ₹725 resistance. A breakout above this level, backed by volume, could trigger the next leg of the rally, whereas a close below ₹650 may indicate short-term weakness and warrant a reassessment," Matalia said.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.