Accumulate Raymond, see double-digit net profit & CAGR over FY17-20: Stewart & Mackertich

Research and broking firm Stewart & Mackertich has initiated an Accumulate rating on Raymond with a target price of Rs 1,161 per share. It expects bright growth prospects in branded apparel segment going ahead.

The house is of the view that due to restructuring exercises company is on a high growth path with shift in focus from non-core businesses to core business adding that branded apparel segment will give thrust to drive sales.

The turnaround of tools and hardware business is likely to progress well and expect auto component business to continue profitable growth momentum, it said.

The firm expects revenue and net profit to grow at double-digit CAGR over FY17-20 although valuations have run up sharply and leave little upside.

Raymond inaugurated a Greenfield Linen manufacturing facility in the newly created Textile Park in Nandgaon Peth, Amravati,under its subsidiary Raymond Luxury Cottons Ltd on December 17, 2017.

At 12:03 hrs Raymond was quoting at Rs 1,105.60, down Rs 4.00, or 0.36 percent. It has touched a 52-week high of Rs 1,128.95.