Raymond Ltd., a major producer of suit fabric, has experienced a decline in its stock price due to the separation of its Chairman, Gautam Singhania, and his wife. This acrimonious split has caused uncertainty among investors, leading to a 12% drop in the stock since November 13th. The market value of Raymond Ltd. has decreased by over $180 million as a result. On Wednesday, the shares fell by 4.4%, marking the largest decline since October 25th.
The Economic Times reported that Nawaz Singhania, Gautam’s wife and a board member of Raymond, has requested 75% of his $1.4 billion fortune as part of a settlement. The Raymond Group has not yet responded to these claims. Analysts believe that the uncertainty surrounding the separation is negatively impacting the stock, as the implications for the company remain unclear. The fact that Nawaz is a board member has also raised concerns about corporate governance.
Despite the recent decline in stock price, some analysts still have a positive outlook on Raymond Ltd. On November 20th, Varun Singh, an analyst at ICICI Securities Ltd., initiated coverage on the stock with a hold recommendation. Data compiled by Bloomberg shows that the company currently has seven buy ratings and no sell ratings.
(Note: This article has been republished from a syndicated feed, with the headline being the only modification made by NDTV staff.)
