Brokerages like Motilal Oswal and InCred, which were part of the investors’ meet, remain bullish on the company’s prospects.
“With a revamped management team, Lifestyle 2.0 will double down on its strengths in wedding wear and is targeting sales growth of 12-15% by FY28F,” InCred said in a note. Raymond’s Lifestyle is India’s largest bridal wear distributor since last 100 years and RLL’s wedding business (55-60% / 20-25% of branded textiles / branded apparel sales) makes it 1.8 times higher than the largest ethnic wear company. shows At the end of FY24, due to its dominant position in the apparel segment, the InCred note said.
The company has guided for 12-15% revenue growth in the lifestyle business and also expects to double its earnings before interest, tax, depreciation and amortization (EBITDA) to over Rs 2,000 crore by FY28. .
Motilal said the company is on a transformational journey and its growth will be driven by doubling its exclusive business (EBO) network, capitalizing on the opportunity of Bangladesh +1 and China +1 and expanding into new categories such as underwear and sleepwear. Along with the growth of wedding dresses. RLL has a legacy portfolio of established brands such as Park Avenue, Raymond, Parx, Ethnics by Raymond and ColorPlus, but has under-penetrated a total of 424 EBOs by the end of 1QFY25, Motilal said. The brokerage sees a strong growth potential for each brand, which could reach at least 250 EBOs individually. The Indian textile maker reported a multifold jump in its first-quarter profit, helped by an exceptional gain from the sale of its consumer business. Raymond’s consolidated profit for the three months ended June 30 was Rs 1,065 crore ($128.7 million), compared with Rs 80.9 crore a year earlier. In April, Raymond agreed to sell its consumer business, Raymond Consumer Care, which includes brands such as Park Avenue deodorant and Kamasutra. Godrej Consumer Products condoms for $345 million in a bid to become debt-free.
The most recent quarter included an increase of Rs 983 crore in sales.
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