Raymond Realty share price hits 5% upper circuit after stock market debut post demerger. Details here

Raymond Realty listing: Raymond Realty, the demerged real estate arm of Raymond Limited, listed on the stock market today, July 1, and hit the 5% upper circuit within minutes of debut.

On BSE, Raymond Realty shares opened at ₹1,005 apiece, slightly lower than the discovered price of ₹1,031.30 apiece. However, they soon jumped to the day's high of ₹1055.20, hitting their 5% upper price band.

Similarly, on the NSE, Raymond Realty shares' listing price was ₹1,000, which was a tad lower than their discovered price of ₹1,039.30. But along similar lines as BSE, Raymond Realty stock hit the 5% upper circuit of ₹1,050.

Raymond Realty got demerged from Raymond on May 1, 2025. The demerger ratio was set at 1:1, meaning that every shareholder of Raymond Limited on the record date received one share of Raymond Realty.

Raymond Realty is among the top 10 listed real estate developers in India and the top five in the Mumbai Metropolitan Region. The company's strong financials and expansion plans are among the top reasons behind the strong interest in Raymond Realty's listing.

In Q4 FY25, it recorded an EBITDA and revenue growth of 13% YoY to ₹194 crore and ₹766 crore, respectively. In FY25, the revenue and EBITDA have grown 45% and 37% YoY to ₹2,313 crore and ₹507 crore, respectively.

Raymond Realty is targeting a sales booking value of ₹3,000 crore in fiscal 2025-26 (FY26), an increase of 30%, backed by a strong launch pipeline of residential projects and robust demand.

The company looks to launch six residential projects this fiscal year in the Mumbai Metropolitan Region, with an estimated revenue potential of about ₹14,000 crore, according to a PTI report.

Domestic brokerage Ventura Securities expects Raymond Realty's revenue/ EBITDA/ net earnings to grow at a CAGR of 20%/ 17%/ 15.9% over FY25-28 to ₹4,065 crore/ ₹813 crore/ ₹426 crore, respectively while EBITDA & net margins to remain stable at 20% & 10.5%, respectively.

Balance sheet is expected to remain net debt zero due to asset-light project development, which will keep RoE at a better level of 16.2% in FY28E, it projected.

Furthermore, it believes that Mumbai's growing population and limited land availability have made redevelopment projects increasingly attractive. The city's push to replace old, dilapidated structures with modern, earthquake-resistant buildings is driving this trend, improving living standards and infrastructure in the process.

Given the substantial opportunities and growth prospects, the demerger of Raymond Realty will unlock significant value for shareholders by allowing the company to pursue sustainable growth with a focused, pure-play real estate strategy, Ventura analysts opined. They have a FY28 DCF-based price target of ₹1,383 per share.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies,...More

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