Multibagger alert: Shares of this small-cap garment company tripled its investors’ wealth in the last two years!

The returns delivered by the company are 2.4 times the returns delivered by the S&P BSE SmallCap index, of which the company is a part.

Raymond Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 268.60 on 17 August 2020 to Rs 941 on 16 August 2022, an increase of 250% in the two years holding period. An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 3.5 lakh today.

These returns are 2.4 times the returns delivered by the S&P BSE SmallCap index, of which the company is a part. In the last two years, the index has climbed from the level of 13,972.11 on 17 August 2020 to 28,194.37 on 16 August 2022, a rally of 101% in the two years.

Raymond is India’s largest integrated worsted suiting manufacturer. The company offers end-to-end solutions for fabrics and garments. It has some of the leading brands within its portfolio - Raymond Ready to Wear, Park Avenue, ColorPlus, Parx, and Raymond Made to Measure amongst others.

In the recent quarter of Q1FY23, on a consolidated basis, the company’s top line increased by 109% YoY to Rs 1728.14 crore. The PBIDT (ex OI) came in at Rs 208.48 crore, whereas the bottom line stood at Rs 80.69 crore.

The company is currently trading at a TTM PE of 12.59x, as against the industry PE of 16.26x. In FY22, the company delivered an ROE & ROCE of 12.19% and 11.10%, respectively.

Today, the scrip opened at Rs 936 and has touched a high and low of Rs 948.35 and Rs 936, respectively. So far 7,246 shares have been traded on the bourses.

At 12.07 pm, the shares of Raymond Ltd were trading at Rs 939.55, a decrease of 0.15% from the previous day’s closing price of Rs 941 on BSE. The stock has a 52-week high & low of Rs 1280 and Rs 390 respectively on BSE.