Motilal Oswal's research report on Raymond Lifestyle
Pure-play Lifestyle company from the House of Raymond: Raymond Lifestyle Limited(RLL), formed as a demerger from Raymond Ltd, has a strong presence in men’s wear(with ~65% share in worsted suiting). RLL’s portfolio includes branded textiles (B2Band B2C) and several apparel brands (such as Park Avenue, ColorPlus, Ethnix byRaymond) that cater to formal, casual and ethnic wear. With a strong brand affinityand wide distribution network, RLL has ~5% share in men’s wedding wear industry. Multiple growth levers at play: We anticipate RLL’s growth will be driven by: 1) fastpaced growth in branded apparels through retail expansion (target to double EBOs);2) capitalizing on opportunities from Bangladesh +1 and China +1 trends in B2Bgarmenting; 3) launch of new categories such as innerwear and sleepwear; 4)increasing focus on casualization and premiumization of portfolio, and 5) achievingsourcing efficiencies through scale, which could enhance operating leverage.
Outlook
With improved FCF generation, RLL could look to increase shareholder returns through dividends. We value RLL at a PE multiple of 30x on Sep’26E (implied 16x EV/EBITDA), resulting in equity valuation of INR195b (or INR3,200 per share).
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