Could Raymond Lifestyle’s new journey trigger a 37% rally?

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Subscribe to enjoy similar stories. Raymond Lifestyle Ltd, the textiles and apparel company known for its suits and other formal wear, has ventured into categories such as ethnic clothing, innerwear, and sleepwear. Will its journey be comparable to that of any brand? Not exactly, since Raymond remains focused on men’s clothing and continues catering to consumer and business segments.

But let’s begin by understanding Raymond Lifestyle’s various business segments and its competitors in each of those. Raymond is well-known for its worsted suiting fabrics, including poly-wool, all-wool, silk, and other blended fabrics used in making garments such as suits and its shirting fabrics, such as cotton and linen. The company has about a 65% market share in the worsted suiting segment.

Competitors in this consumer-facing space include Arvind Ltd and Vardhman Ltd.   Branded textiles are Raymond's highest revenue contributor, accounting for about 50% of its topline in 2023-24. The company’s branded textile unit reported revenue of ₹3,449 crore for FY24, with an Ebitda margin of 20.5%. The segment is clearly a cash cow for the company.

Raymond sells apparel under four brands to consumers. Its Raymond Ready to Wear and Park Avenue brands offer formal apparel. ColorPlus offers trendy casual and formal apparel, and Parx sells casual clothing for young people.

The Raymond Shop, which was started in 1958, has more than 1,100 stores across 380 towns and cities in India, selling these four brands. The company’s Ethnix by Raymond brand includes ethnic wear such as sherwanis, kurtas, and jackets, which are sold in 114 stores. According to chairman Gautam Singhania, Raymond plans to add at least 100 Ethnix by Raymond stores in FY25.  The company