Raymond's Q2 financials show positive growth, but some areas need improvement

Raymond, a midcap textile company, has recently declared its financial results for the quarter ending September 2024. The company has shown positive growth in its financial performance, with a score of 11 compared to -2 in the previous quarter.

According to the financials, Raymond's net sales for the quarter were Rs 1,044.74 crore, showing a growth of 122.25% year on year. This indicates a very positive sales trend in the near term. The company's profit before tax (PBT) has also shown a significant growth of 128.54% year on year, standing at Rs 33.02 crore. The debt-equity ratio for the half-yearly period is at its lowest in the last five years, indicating that the company has been reducing its borrowing in comparison to its equity capital. Additionally, the debtors turnover ratio for the half-yearly period is at its highest in the last five years, showing that the company has been able to settle its debtors faster.

Raymond has also been distributing higher dividends to its shareholders, with the dividend per share (DPS) at its highest in the last five years at Rs 10.00. The dividend payout ratio (DPR) is also at its highest in the last five years, with the company distributing a higher proportion of its profits as dividends.

However, there are some areas that need improvement for Raymond. The profit after tax (PAT) for the quarter has fallen by -21.6% year on year, indicating a negative trend in the near term. The non-operating income for the quarter is also high at 62.89% of the PBT, which may not be a sustainable business model. The earnings per share (EPS) for the quarter are at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders.

MarketsMOJO has given a 'Hold' call for Raymond's stock, taking into consideration its financial performance and market trends. With a positive outlook for the company's sales and PBT, investors may want to keep an eye on Raymond's stock in the coming months.