Raymond Lifestyles is expected to list on the stock market in the first week of September. Ahead of the listing, Raymond Lifestyles management held a factory tour and analysts’ meet at its facility in Vapi, Gujarat, and projected revenue growth of 12-15% by FY28 and doubling EBITDA to Rs 2,000 crore.
MOFSL said the growth will be driven by doubling of EBO network, leveraging Bangladesh+1 and China+1 opportunities, expansion into new categories such as innerwear and sleepwear, and wedding wear-led growth.
“Raymond has demonstrated proactive actions in the form of divestiture of its FMCG business, separation of its lifestyle business, restructuring and separation of its real estate business and setting up of its engineering division after the acquisition of Maini Precision (MPPL). These three vectors — professional management, net cash at group level and cost and working capital optimisation — have the potential to create shareholder value for each of its businesses,” MOFSL said.
The brokerage assessed the FY26 EV/EBITDA multiple at 15 times, implying a valuation of Rs 15,900 crore, or Rs 2,610 per share.
The spin-off of the lifestyle business is part of a larger plan for Raymond Cos. to also spin off its real estate business, which could take 15 to 18 months to complete. Once the overall process is complete, Raymond Cos. will be left with its engineering business.
MK Global said Raymond Lifestyle will target huge business opportunities in India in wedding, textile, exports and styling. “The company targets sales/EBITDA CAGR of 12-15%/16-17% over FY24-28. Sales growth is likely to be driven by CAGR of 18-20% in apparel/clothing business (40% of sales) and 7-8% in high ROCE textile business (50% of sales),” it said.
Apparel CAGR of 18-20 percent will be driven by retail expansion of 200 stores per year, brand refresh and TAM growth in ethnic, casual, sleepwear and innerwear.
“The garment industry is enjoying macroeconomic tailwinds supported by global supply chain diversification and potential FTAs. Despite faster growth in relatively lower margin non-textile businesses, RLL is steadily growing its profit margins due to increased scale in branded apparel/clothing. The company is a net debt-free company and is expected to list by mid-September 2024,” it said.
Incred Equities announced that Raymond Lifestyle has appointed its top executives from the Indian company as independent directors. Of the 11 directors appointed to Raymond Lifestyle, nine are independent. Sunil Kataria will continue at the helm as CEO. Raymond Lifestyle’s management team will focus on strengthening the core, accelerating growth areas and building new segments such as ethnic wear, innerwear and pyjamas, Incred said, and the company is expected to be listed by the first week of September.
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