Buy Raymond with a stoploss of Rs 388: Agarwal

Buy Raymond with a stoploss of Rs 388, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Raymond with a stop loss of Rs 388 and a target of Rs 420 in the short term. As we all know Raymond has got a strong brand value attached to it, from ages, it is into textile and we feel the fortunes of textile are slowly moving up and they are turning around. It already has 600 stores with them right now and they plan to open another 1000 stores in the next three years."

He further added, "They are trying to put their focus in smaller towns where they do not have any competition, and the brand has a greater value. Apart from this they have around 125 acres of land which has immense value and news that it has around Rs 2000 crore value attached to that. It may take some time to monetize because of legal hassles but still the asset is still there. Considering the brand value the retail chain and the land we think it is a good buy at this price."

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