Raymond Lifestyle: What market analysts say ahead of stock listing 

Raymond Lifestyle Ltd is likely to list on stock exchanges in the first week of September. Ahead of the event, the Raymond Lifestyle management hosted a plant visit and analyst meet at its facility in Vapi, Gujarat, where it guided for 12-15 per cent revenue growth and projected a doubling of Ebitda to Rs 2,000 crore by FY28.

The growth, MOFSL, said would be led by the doubling of its EBO network, capitalising on Bangladesh +1 and China +1 opportunity, the extension of new categories such as innerwear and sleepwear, and wedding wear-led growth. 

"Raymond has been demonstrating positive actions in the form of selling the FMCG business, de-merging the lifestyle business, shaping the real estate business and demerging it, and establishing an engineering unit after the Maini Precision (MPPL) acquisition. These three vectors may create shareholder value for each of the businesses: professional management, net cash at group level, and optimization of costs and working capital," MOFSL said.

The brokerage ascribed EV/Ebitda of 15 times on FY26 and arrived at a valuation of Rs 15,900 crore or per share price of Rs 2,610.

The step to demerge lifestyle business is a part of a bigger plan, as Raymond Ltd intends to demerge real estate business as well, which could take 15-18 months period to complete. After completing the whole process, the Raymond entity would would be left with the engineering business.

Emkay Global said Raymond Lifestyle would be a play on the huge opportunity in Indian weddings space, textiles, exports, and styling. "It targets CAGR of 12-15 per cent/16-17 per cent in revenue/Ebitda, over FY24-28. Topline growth is likely to be led by CAGR of 18-20 per cent in its apparel/garmenting businesses (40 per cent revenue mix) and of 7-8 per cent in high ROCE textiles business (50 per cent mix)," it said.

The apparel CAGR of 18-20 per cent is likely to be driven by retail expansion of 200 stores per annum, brand refresh, and TAM growth with ethnic, casual, sleep and inner-wear. 

"Garmenting enjoys macro tailwinds backed by diversification of global supply chains and potential FTAs. Despite faster growth in the relatively lower-margin non-textile businesses, RLL sees steady margin gain, with branded apparel/garmenting scale-up. It is a net-debt free player, expected to be listed by mid Sep-24," it said.

InCred Equities said Raymond Lifestyle has appointed top executives from India Inc as independent directors. Out of the 11 directors appointed in Raymond Lifestyle, nine are independent directors. Sunil Kataria remains at the helm as its CEO. Raymond Lifestyle's leadership team will focus on strengthening its core, accelerating its growth categories and building new categories like ethnic wear, inner wear, sleep wear, InCred said while expecting its listing by the first week of September.