Raymond shares jump 9% ahead of listing of lifestyle business. Here's why
Raymond shares surged 9% to hit a high of Rs 2,182 on the NSE on Tuesday ahead of the listing of its lifestyle business which is expected this week. Brokerages see this as a transformative move for the company which is synonymous with legacy brands such as Park Avenue, Raymond, Parx and ColorPlus.
Brokerages like Motilal Oswal and InCred which were part of the investors’ meet remain optimistic about the company's prospects.
«Lifestyle 2.0, with a revamped management team, will double down on its strengths in wedding wear and is targeting a 12-15% sales growth by FY28F,» InCred said in a note. Raymond's Lifestyle is largest wedding wear player in India since the last 100 years and the wedding business of RLL (55-60%/20-25% of branded textiles/branded apparel sales) pegs it at 1.8X higher than the largest ethnic wear peer as of FY24-end, driven by its dominant position in the suiting segment, the InCred note said.
The company has guided for 12-15% revenue growth in the lifestyle business and also expects to double its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) to over Rs 2,000 crore by FY28.
Motilal said that the company is on a transformative journey and its growth will be led by the doubling of its Exclusive Brand Outlet (EBO) network, capitalising on Bangladesh +1 and China +1 opportunity and the extension of new categories such as innerwear and sleepwear along with wedding-wear led growth.
RLL has a legacy collection of well-established brands such as Park Avenue, Raymond, Parx,
