Raymond shares surge 8% in 2 days ahead of lifestyle business’ listing tomorrow
Raymond shares surged 8% over two days, reaching a high of Rs 2,179 on the BSE on Wednesday, ahead of the listing of its lifestyle business, Raymond Lifestyle (RLL) on the stock exchanges on Thursday.
The brokerages also see this as a transformative move for the company which is synonymous with legacy brands such as Park Avenue, Raymond, Parx, and ColorPlus.
Domestic brokerage firms Motilal Oswal and Ventura remain optimistic about the future prospects of the company.
“RLL currently holds a 5% market share in the INR 750b men’s wear market as the wedding season contributes 35-40% of revenue (INR 25-35b in FY24). The company continues to focus on premium wedding collections and aims to increase its market share to 6-7%, with a revenue CAGR target of 15%. The wedding format also offers 300bp higher gross margins, which boosts EBITDA growth,” said Motilal Oswal in its report.
The market size of ethnic wear is expected to grow at an 8% CAGR, however, given the shift from unorganized to organized, the management expects the organized market to grow at 14% (vs. unorganized at 5%).
As of FY24, it (RLL) has a presence across 114 stores, with a revenue contribution of Rs 80 crore, catering to both occasion and casual ethnic wear. It targets to add 100+ stores annually, which could achieve a revenue potential of Rs 350 crore by FY27E.
“Emboldened by the Ethnix success, Raymond believes that Sleepz and Park Avenue innerwear will be the new growth engines, having exponential potential. Accordingly, Raymond is backing the
