Shah told CNBC-TV18, "Raymond is a very solid brand. This is a very prominent company in the textile space. With the textile industry doing very well and the export doing very well as well as the domestic demand firming up, this company has almost about 2.5-3,000 crore of turnover should benefit immensely on account of strong domestic demand.”
He further added, “The company has shut down production at its Thane unit and its shifting all the production to its Vapi unit. Because of this shut down they offered VRS to workers at Thane and now they are shifting to Vapi, so the margins are going to be higher by 4%. So the full impact of this 4% margin we will realize in the next year that is for March 2011 we realize this 4% extra margin. Because of this VRS now the company is keen on developing this 120 acre of land at Thane; the value of that is about Rs 1,200 crore where as the market cap is about Rs 1,351 crore. Infact the work is already started on about 15-20 acres of land, so I think we will see the full impact of this development in the coming years. Over the next five years, I expect this company to post in almost Rs 1,200 crore of net profit from this project.”
“The company has got almost Rs 700 crore of investment, so if you add Rs 1,200 crore of land to Rs 700 crore of investment that is about Rs 1,900 crore of assets plus the Rs 3,000 crore business and all that you are getting for just about Rs 1,350 crore. So there is an immense upside in Raymond’s."
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wah Binani Industries......Rs.123....you are right Mr. Sandeep Dhawan. Thanks to you. you are doing good job for investors.
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