Raymond Limited

“Post-demerger Raymond earns a 1.6% ROCE with sub-1x interest coverage, has no durable competitive advantage, and is run by governance-compromised promoters facing proxy advisor opposition. The aerospace optionality is real but requires flawless execution from a team with no track record of delivering it — and the balance sheet cannot fund mistakes. At ~₹2,350 Cr market cap near SOTP fair value, there is no margin of safety to compensate for these compounding risks. Capital deployed here faces slow, steady erosion rather than compounding. This is a clear avoid for long-term investors.”