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    Raymond

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    Pavneet Sahni
    Raymond Ltd is one of the largest fabric manufacturers in India with over 60% market share. While it saw significant sales growth from June to September 2010, it has experienced declining profits in all quarters from March 2010 to March 2011. Using the Capital Asset Pricing Model, the estimated share price was INR 444.93 but the actual share price on September 2nd, 2011 was INR 348.2, indicating the shares are undervalued based on the CAPM approach.

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    Raymond

    Uploaded by

    Pavneet Sahni
    17 views1 page
    Raymond Ltd is one of the largest fabric manufacturers in India with over 60% market share. While it saw significant sales growth from June to September 2010, it has experienced declining profits in all quarters from March 2010 to March 2011. Using the Capital Asset Pricing Model, the estimated share price was INR 444.93 but the actual share price on September 2nd, 2011 was INR 348.2, indicating the shares are undervalued based on the CAPM approach.

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    Raymond Ltd is one of the largest fabric manufacturers in India with over 60% market share. While it saw significant sales growth from June to September 2010, it has experienced declining profits in all quarters from March 2010 to March 2011. Using the Capital Asset Pricing Model, the estimated share price was INR 444.93 but the actual share price on September 2nd, 2011 was INR 348.2, indicating the shares are undervalued based on the CAPM approach.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    17 views1 page

    Raymond

    Uploaded by

    Pavneet Sahni
    Raymond Ltd is one of the largest fabric manufacturers in India with over 60% market share. While it saw significant sales growth from June to September 2010, it has experienced declining profits in all quarters from March 2010 to March 2011. Using the Capital Asset Pricing Model, the estimated share price was INR 444.93 but the actual share price on September 2nd, 2011 was INR 348.2, indicating the shares are undervalued based on the CAPM approach.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    VALUATION OF SHARES

    RAYMOND LTD.
    With over 60% market share in India, Raymond LTD is one of the largest integrated
    manufacturer of fabric in the world. The company comprises of following divisions textile,
    engineering and aviation.

    QUARTERLY
    SALES
    GROWTH
    PROFITS

    MAR 10-JUN
    10
    -27.40

    JUN 10-SEP 10

    SEP 10-JAN 11

    63.15

    13.18

    JAN 11-MAR
    11
    -6.3

    -473.5

    -257.4

    -395.53

    -101.12

    CAPITAL ASSET PRICING MODEL (CAPM):


    By using Ke the share price was estimated to be INR 444.93 but the actual value is INR
    348.2.
    So using CAPM approach we can say that the share is undervalued as on 2nd Sept,2011.

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