Brokerage Motilal Oswal expects the stock to launch on Thursday, September 5.
The brokerage participated in an investor conference hosted by Raymond Lifestyle, the post in which it wrote in a note that the company recommended that it grow revenue between 12% and 15% and double its earnings before interest, taxes, depreciation and amortization (EBITDA). ) has repeated. Over Rs 2,000 crore by FY 2028.
“This long period, with working capital reduced to 60 days, should result in a free cash flow of between Rs 600 crore and Rs 700 crore per year,” Methil Oswal wrote in a note.
Calling Raymond Lifestyle’s growth targets “ambitious”, the broker wrote that the targets are supported by the company increasing its exclusive business stores (EBOs) to more than 900 stores by FY2027, as Bangladesh+ 1 and China+ invests. 1 opportunities, expanding into new categories such as underwear and sleepwear, and focusing on the wedding dress opportunity.
The brokerage expects Raymond Lifestyle’s revenue to grow at a compound annual growth rate (CAGR) of 17% in fiscal 2024 and 2027, with a focus on a low-comex-style franchise model.
“The Indian market is worth $16 billion, so shifting business from Bangladesh creates a good opportunity,” the brokerage said. And he added that new trade deals with the UK, EU and Australia should create tailwinds.
Motilal Eswal also expects Raymond Lifestyle’s wedding business to have a revenue potential of Rs 350 crore by FY 2027, due to business shifting from unorganized to organized space, presence in 114 stores and event catering and Ethnic clothing is done.
Shares of Raymond are trading 6.6 percent higher at 2,139.5 rupees. This share has grown by 23% so far this year.