Raymond stock falls 3% after hitting 52-week

Raymond's share price fell more than 3% on Wednesday, September 23, as investors took profits. The stock had touched a fresh 52-week high of ₹1,195.30 in the previous session.

It declined as much as 3.4% to an intraday low of ₹1,075.10 on the BSE. This pullback followed a massive rally across multiple timeframes.

Recent Performance Surge

Despite the daily drop, Raymond shares have posted sharp gains. The stock has risen 10% in one week, 70% in one month, 84% in three months, and 214% over the last six months. Over the past year, it has gained 74%.

The recent momentum is linked to the company's expansion in aerospace and defence operations. Its subsidiary, JK Maini Global Aerospace Limited, recently won a tender from a leading Indian aerospace and defence OEM.

Strategic Aerospace Entry

Raymond Limited's aerospace and defence arm secured a programme to assemble wing and centre fuselage structures for a major indigenous fighter aircraft. This marks the company's entry into the aircraft structures segment.

Rakesh Tiwary, Group CFO of Raymond Group, said the opportunity is "strategically much larger than its immediate business potential." He noted it provides an entry into high-value aircraft structures while maintaining capital efficiency, as the programme will use the customer's existing infrastructure.

The company's Engineering vertical now comprises Aerospace and Defence, and Tools and Auto Components. Its aerospace and defence business expanded following the acquisition of Maini Precision Products.

Technical and Corporate Developments

According to Jigar S Patel, Senior Manager of Technical Research at Anand Rathi Share and Stock Brokers, the stock appears extremely stretched. He pointed to weekly and daily Relative Strength Index (RSI) readings of 83 and 84, indicating strong overbought conditions.

"A Shooting Star candlestick pattern was formed yesterday, further indicating the possibility of near-term profit booking or a pullback," Patel noted. He advised booking profits, with immediate support at ₹1,000 and key resistance at ₹1,193. A sustained break below ₹1,000 could signal a deeper correction.

Corporate activity is also in focus. Raymond plans to raise funds through a preferential allotment of 33.28 lakh convertible warrants at ₹645 per warrant to Minerva Ventures Fund. An Extraordinary General Meeting is scheduled for Saturday, October 3, to consider this and other proposals.

Financial and Sector Outlook

The company reported a sharp sequential increase in net profit for Q1 FY27. Profit surged to ₹21 crore from ₹1.13 crore in Q4 FY26, while revenue rose slightly to ₹606 crore.

Performance was supported by the Aerospace & Defence and Precision Technology & Auto Components divisions. The broader outlook for India's defence industry remains a key factor for investor interest.

Analysts at Jefferies believe India's defence spending could see double-digit compound annual growth in the medium term. They expect domestic defence capital spending to increase at a 16% CAGR from FY26 to FY30, compared to 10% for overall defence capex, driven by a focus on indigenisation. The brokerage expects visible growth prospects of over 20% for private sector companies.