Investors puzzled as Raymond Realty falls 17.16 percent despite good results

Market pulse

From the investor's mind

Concerns regarding banks lending to non-resident Indians (NRIs) to invest money in India are largely unfounded, as these transactions essentially function like low-risk loans against fixed deposits. If the borrowing cost in US dollars for these funds remains lower than the lending rate, and there are no underlying term mismatches, the spread represents a highly favorable outcome for the banks. Portfolio manager Deepak Shenoy suggests that this mechanism is structurally sound and represents a good business opportunity rather than a systemic risk, meaning investors should view the practice as a positive contributor to banking margins rather than a cause for alarm.

Word in the street

Raymond Realty Limited

Investors are actively debating Raymond Realty Limited, whose stock has fallen 17.16 percent over the past year, dragging its market cap to about 3,366 crore. Many are puzzled by this sustained decline because the company recently delivered good results and already seemed undervalued. Some attribute the pressure to weak markets or retail investors using MTF who do not understand the sector well. While general real estate slowdowns worry some, others argue that property registration is a lagging metric of past sales. Instead, they believe pre-sales is a much better metric to gauge the health of the real estate cycle.

Yesterday's big moves

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