Buy Raymond; target of Rs 1365: Arihant Capital

Arihant Capital's research report on Raymond

Raymond Ltd (Raymond) is a diversified group with roots in the textile and apparel business. With a legacy of almost 100 years, the brand is largely associated with Trust, Quality and Excellence. It operates across 7 major segments and commands major market shares in most of them: Branded Textiles- The flagship business; Branded Apparel- Raymond leads the market through its power brands: Raymond Ready to Wear, Park Avenue, ColorPlus, Parx; Garmenting- The white label business with a domestic and international presence; High Value Cotton Shirting- Selling high value cotton fabrics to domestic and international brands; EngineeringComprised of: (i) Tools and Hardware- JK Files is a market leader today, with a 65% share in the domestic steel file industry; (ii) Auto Components- Ring Plus Aqua Ltd, is a leading manufacturer of ring gears, flex plates and water pump bearings in India; Real Estate- Raymond entered real estate development with Raymond Realty in 2019, which has since received an overwhelmingly positive response.

Outlook

We initiate coverage on the company with a BUY rating, and a target price of INR 1,365 with an upside of 77% from the CMP.