News: India's Raymond gains on expansion plans

(BL 17/05/2006) Mumbai - The real estate angle and expected gains from expansion plans helped the Raymond Ltd counter on Tuesday. The company's shares, which were down by about 6 per cent in Monday's bloodbath, made a smart pull back on Tuesday to gain by 5.42 per cent and close at Rs 549.15, up from the previous close of Rs 520.90.

Though the company has no plans to use its real estate near Mumbai, dealers said this was a factor that attracted investors to the stock. They said Raymond's 3 million metresper annum expansion plan for worsted suiting at Vapi in Gujarat was also expected to start yielding results from next year.

The first phase of the Rs 197-crore expansion plan would start commercial production shortly, they pointed out. On the NSE, Raymond rose 7.67 per cent to Rs 565.65.