The stock shed as much as 4.3 percent in intraday deals on Wednesday. Meanwhile, in 7 sessions (November 13-22), it decreased to about 12.5 percent. It has also gained 13 percent in 2023 YTD and 36 percent in the last 1 year. But in the last 4 years, the stock has rallied almost 6x.
Nawaz Modi Singhania, the estranged wife of billionaire industrialist Gautam Singhania, has filed allegations of physical abuse against her husband. In an exclusive interview with India Today, Modi claimed that she and her minor daughter, Niharika, were physically assaulted by Singhania.
Read here: Nawaz Modi Singhania accuses estranged husband Gautam Singhania of assassination… claims ‘power and control’ were reasons.
When contacted for comment regarding those allegations, Singhania declined to comment, according to the report. “In the interest of my two beautiful daughters, I would like to preserve the dignity of my family and I would refrain from offering any comment. Please respect my privacy,” he wrote in an email response, media reports said.
As part of a family settlement following the couple’s divorce, 53-year-old Modi reportedly claimed 75 percent of Singhania’s alleged 1.4 billion net worth for herself and her two daughters – Niharika and Nisa.
Singhania recommended creating a family trust and transferring the family’s assets to it, with him acting as the sole managing trustee, even though he is believed to have generally agreed to the requirement. The terms are reportedly unacceptable to Nawaz Modi Singhania.
Promoters owned a 49.11 percent stake in Raymond as on September 30. Currently, Nawaz is a non-executive director at Raymond. Gautam, on the other hand, is chairman & MD.
Billionaire Gautam Singhania on November 13 announced his separation from his wife Nawaz, saying that both have decided to go their separate ways. Singhania, 58, married Nawaz Modi, daughter of lawyer Nadar Modi, in 1999.
Read here: Gautam Singhania announces separation from wife
“This Diwali will not be the same as many in the past,” Singhania, chairman and managing director of textile conglomerate Raymond Ltd, said on social media. “It is my belief that Nawaz and I will follow different paths from here.”
He married Nawaz, who was 29 years old in 1999, after eight years of courtship.
Apart from the marital dispute, sentiment was also subdued as brokerage house ICICI Securities initiated coverage on Raymond with a hold call and target price of ₹1,860, which implies an upside potential of nearly 12 percent. The brokerage highlighted rising input costs, a challenging demand environment and likely increased competition from new players as key risks for the stock.
In a note, ICICI Securities said the divestment of Raymond’s FMCG business, simplification of group structure through possible spin-off of the lifestyle business, doubling the size of engineering business by foraying into sunrise sectors of aerospace, defense and EV through the acquisition of MPPL raised the stock.
“We believe all these initiatives are steps in the right direction and have been reflected in a 6x improvement in the company’s average share price from the FY20 low to the 2023YTD average,” it said.
It also believes that Raymond has ample scope to become the number two player in this segment. It (the brand) not only enjoys 100 percent consumer awareness in India but has also been one of the leading players in the wedding segment through its apparel business (housed under Branded Textile) for the past nine decades. On a positive note, the segment enjoys a RoCE of more than 30 percent and could therefore be value accretive. The asset-light (franchise-led) approach to retail expansion is likely to be FCF positive, it said.
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decision
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Updated: 22 Nov 2023, 13:31 IST