Defence stock Raymond share price declined more than 3% on Wednesday, September 23, as investors booked profits after the stock touched a fresh 52-week high of ₹1,195.30 in the previous session on September 22.
The stock shed as much as 3.4% to its day’s low of ₹1,075.10 per share on BSE.
Despite Wednesday’s decline, the stock has delivered sharp gains across multiple time frames.
Raymond shares have risen 10% in one week, 70% in one month, 84% in three months and 214% in the last six months. Over the past one year, the stock has gained 74%, highlighting the strong rally that preceded Wednesday’s profit booking.
The recent momentum in Raymond shares has come ahead of the company’s Extraordinary General Meeting (EGM), scheduled for Saturday, October 3. The meeting is expected to consider and approve key proposals, including the preferential issue of securities through private placement.
Should you buy?
According to Jigar S Patel, Senior Manager – Technical Research, Anand Rathi Share and Stock Brokers Limited, RAYMOND is currently looking extremely stretched, with the weekly RSI at 83 and daily RSI at 84, indicating strong overbought conditions.
The daily RSI has also witnessed multiple swings, suggesting weakening momentum at higher levels. Importantly, a Shooting Star candlestick pattern was formed yesterday, further indicating the possibility of near-term profit booking or a pullback, he noted.
“Hence, we advise booking profits at current levels rather than chasing the stock at higher levels. The immediate support is placed at ₹1,000, while ₹1,193 remains the key resistance zone. A sustained break below ₹1,000 could further increase the probability of a deeper correction,” he suggested.
Preferential issue and defence order
Earlier this month, Raymond announced that it plans to raise funds through the preferential allotment of 33.28 lakh convertible warrants. The warrants are proposed to be issued at ₹645 per warrant and will be allotted on a private placement basis to Minerva Ventures Fund.
The preferential issue has added to investor interest around the stock, particularly as Raymond’s shares have rallied sharply in recent months. The proposed fundraise is among the key developments investors are expected to track ahead of the October 3 EGM.
Alongside the preferential allotment, Raymond has also attracted attention after its aerospace arm secured fresh multi-programme orders from an Indian aerospace and defence major.
The order, worth ₹33 crore, covers machining, aerospace castings, structural components and complex assemblies. Production is expected to commence progressively across 2026 and 2027, according to the company’s recent BSE filing.
The order win adds to the focus on Raymond’s Aerospace & Defence business, which has emerged as one of the divisions supporting the company’s recent operating performance.
Raymond Q1
Diversified Raymond Ltd reported a sharp sequential increase in net profit on Friday, August 7, with Q1 FY27 profit surging 1,758% to ₹21 crore from ₹1.13 crore in Q4 FY26.
Revenue increased 0.4% quarter-on-quarter to ₹606 crore from ₹603 crore, while EBITDA rose 2.4% to ₹77.3 crore from ₹75.5 crore. EBITDA margin also improved to 12.8% in Q1 FY27 from 12.5% in the previous quarter.
The company reported total income of ₹628 crore in Q1 FY27, marking 13% year-on-year growth from ₹555 crore in Q1 FY26.
Raymond said its quarterly performance was supported by the Aerospace & Defence and Precision Technology & Auto Components divisions. The Precision Technology & Auto Components division also recorded healthy export growth in critical components for the hybrid sector, supporting operational momentum across the group.
The Aerospace & Defence business reported revenue of ₹123 crore in Q1 FY27, up 40.4% from ₹87 crore in Q1 FY26. EBITDA for the segment increased 25.4% to ₹26 crore from ₹21 crore.
Defence sector outlook
The broader outlook for India’s defence industry has also remained a key factor behind investor interest in defence-linked companies.
Analysts at Jefferies believe India’s defence spending could record a double-digit compound annual growth rate (CAGR) in the medium term amid global geopolitical tensions. The brokerage expects private sector companies to have visible growth prospects of more than 20%, supported by the government’s focus on domestic manufacturing and development of the private sector supply chain.
Jefferies expects India’s domestic defence capital spending to increase at a 16% CAGR over FY26-30E, compared with 10% CAGR for overall defence capex, as the focus on indigenisation continues.
Defence exports are also gaining momentum, with operational validation of Indian-made systems such as the Akashteer command and control system and BrahMos missiles during Operation Sindoor improving export credibility. Analysts estimate defence exports will rise at an 11% CAGR over FY26-30E to ₹58,400 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.a
