Buy Raymond Lifestyle; target of Rs 3000: Motilal Oswal

Motilal Oswal is bullish on Raymond Lifestyle recommended buy rating on the stock with a target price of Rs 3000 in its research report dated December 24, 2024.

Broker Research

December 26, 2024 / 13:11 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Raymond Lifestyle

The festive and the ongoing wedding season has improved the demand environment for retailers such as Raymond Lifestyle (RLL), with expectations of double-digit growth (~12-14%) in secondary sales, which should result in improved collections in 3QFY25. However, primary sales may reflect demand improvement with a quarter’s lag owing to higher inventory in the channel amid demand weakness in the past 12-15 months. Given a higher number of wedding days extending the season to 1HFY26, the demand momentum is expected to remain robust, which places RLL in a sweet spot as its wedding portfolio accounts for ~35-40% of its total revenue. RLL is targeting 12-14% revenue growth and 15-18% growth in EBITDA/PAT in the medium term. The branded apparels segment will be the key growth driver, aided by increased EBO footprint, the ramp-up of the Ethnix by Raymond, and the entry into sleepwear and innerwear segments.

Outlook

We factor in a CAGR of 9-11% in revenue/EBITDA/PAT over FY24-27. We value RLL at a PE multiple of 30x on Dec’26E. Reiterate BUY with an unchanged TP of INR3,000.

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